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The Law of Verdoorn: Evidence from Greek Disaggregated Manufacturing Time Series Data

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  • Nicholas Apergis

    (University of Macedonia, Thessaloniki, Greece)

  • Spyros Zikos

    (University of Macedonia, Thessaloniki, Greece)

Abstract

This paper tests the validity of Verdoorn’s law in Greek manufacturing. Through the Generalised Method of Moments (GMM) methodology, estimates of the Verdoorn law in aggregated and disaggregated manufacturing Greek data are obtained in order to explain disparities in income and growth among Greek manufacturing sectors. The results provided evidence that increasing returns to scale with certain, albeit low, substitutability possibilities between capital and labour are present in Greek manufacturing groups.

Suggested Citation

  • Nicholas Apergis & Spyros Zikos, 2003. "The Law of Verdoorn: Evidence from Greek Disaggregated Manufacturing Time Series Data," The Economic and Social Review, Economic and Social Studies, vol. 34(1), pages 87-104.
    • Handle: RePEc:eso:journl:v:34:y:2003:i:1:p:87-104
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    References listed on IDEAS

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    Cited by:

    1. Martinho, Vítor João Pereira Domingues, 2011. "What the keynesian theory said about Portugal?," MPRA Paper 32610, University Library of Munich, Germany.
    2. Matteo Deleidi & Claudia Fontanari & Santiago José Gahn, 2023. "Autonomous demand and technical change: exploring the Kaldor–Verdoorn law on a global level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 57-80, April.
    3. Concetta Castiglione, 2011. "Verdoorn-Kaldor’s Law: an empirical analysis with time series data in the United States," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 1(3), pages 1-8.

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