Abstract. This article examines regional inequalities in Greece, on the basis of σ‐convergence and β‐convergence analysis and shows that they were reduced in the 1970s and the 1980s. Regression analysis indicates that regional inequalities have a pro‐cyclical character, increasing in periods of economic expansion and decreasing in periods of economic recession. It also indicates that the structure of local industry, the process of EU integration, the quality of human capital and the existence of resources suitable for the development of tourism are among the factors affecting regional growth.
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