A development index for the Greek regions

There has been a growing consensus in recent years that development is a multidimensional concept that embodies the enhancement of several aspects of human life and, as a result, it is too complex to be captured by single indices. Composite Indicators have increasingly been recognised as useful tools in the measurement of this concept. In the absence of rigorous and comprehensive empirical studies in Greece on this topic, the paper assesses and reveals the developmental transformations of the regional economies at NUTS 2 and 3 levels in the period 1991–2011. In this way, this study provides a more comprehensive and integrative perspective of regional development in Greece presenting empirical evidence not only from a country with large and persistent regional inequalities but also from a cohesion country of the European Union for which regional policy has been of critical importance in the last decades. Moreover, the study adds to the literature shedding light on an under-researched topic; the importance of spatial heterogeneity in the construction of Composite Indicators. The results reveal a heterogeneous regional pattern of development for the Greek case. The findings can be used by policymakers as a way to better understand and improve the regional development process.