Econometric Analysis of GDP and Income Inequality in Greece: A Diachronic Study Across Pre-Crisis, Crisis, and Post-Crisis Periods

This study examines the relationship between Gross Domestic Product (GDP) and income inequality in Greece across three key periods: the pre-crisis period (2003-2008), the crisis and memoranda period (2009-2014), and the post-crisis period (2015-2020). Using data from the World Bank Open Data database, the study employs correlation analysis, and linear regression models to analyze how economic changes influence income distribution. The findings reveal that during the pre-crisis period, economic growth was moderately correlated with increasing inequality, although this relationship was not statistically significant, indicating uneven distribution of growth benefits. In the crisis period, a strong and statistically significant negative relationship between GDP and the Gini coefficient was identified, highlighting the sharp rise in inequality as the economy contracted due to austerity measures. In the post-crisis period, the relationship between GDP and inequality weakened, showing a statistically insignificant correlation, suggesting that economic recovery alone did not significantly reduce inequality. The study concludes that economic growth is insufficient to address income inequality without targeted policy interventions, particularly during periods of crisis. These findings underscore the importance of comprehensive social policies to mitigate inequality and suggest areas for future research on the impact of specific interventions on income distribution.