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Duality theory and cost function analysis in a regional context: the impact of public infrastructure capital in the Greek regions

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  • Nigel Spence

    ()
    (Department of Geography, Queen Mary, University of London, Mile End Road, London E1 4NS, UK)

  • Antonis Rovolis

    ()
    (School of Planning and Regional Development, University of Thessaly, Pedion Areos 38334, Volos, Greece)

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    Abstract

    The resurgent interest in the role of infrastructure on development, spurred by the work on Aschauer in the late eighties, has produced a voluminous research activity, both at national and regional levels. Even though the majority of this research is based on production function analysis, more recently has emerged the alternative analytical framework of duality theory and cost function analysis. The latter is utilised here, in an effort to investigate public capital's impact on manufacturing at the regional level (Greek prefectures). Public capital categories have been grouped to two major categories of `productive' and `social' infrastructure. The latter seems to play little role in reducing private costs, but the former appears to be an important cost reduction influence. It can also be demonstrated that infrastructure has a substitutional relationship with labour and intermediate inputs, and a complementary one with private capital.

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    Bibliographic Info

    Article provided by Springer in its journal The Annals of Regional Science.

    Volume (Year): 36 (2002)
    Issue (Month): 1 ()
    Pages: 55-78

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    Handle: RePEc:spr:anresc:v:36:y:2002:i:1:p:55-78

    Note: Received: November 1998/Accepted: August 2001
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    Cited by:
    1. Chu-Ping C. Vijverberg & Wim P. M. Vijverberg, 2007. "Diagnosing the Productivity Effect of Public Capital in the Private Sector," Eastern Economic Journal, Eastern Economic Association, vol. 33(2), pages 207-230, Spring.
    2. Jeffrey I. Bernstein & Theofanis P. Mamuneas, 2007. "Public Infrastructure, Input Efficiency and Productivity Growth in the Canadian Food Processing Industry," Working Papers 0703, Florida International University, Department of Economics.
    3. Fedderke, Johannes W. & Bogetic & Zeljko, 2006. "Infrastructure and growth in South Africa : direct and indirect productivity impacts of 19 infrastructure measures," Policy Research Working Paper Series 3989, The World Bank.
    4. Anwar, Sajid, 2006. "Provision of public infrastructure, foreign investment and welfare in the presence of specialisation-based external economies," Economic Modelling, Elsevier, vol. 23(1), pages 142-156, January.
    5. Fu, Feng-Cheng & Vijverberg, Chu-Ping C. & Vijverberg, Wim P., 2004. "Public Infrastructure as a Determinant of Intertemporal and Interregional Productive Performance in China," IZA Discussion Papers 1019, Institute for the Study of Labor (IZA).
    6. Teresa Sequeira & Francisco Diniz, 2013. "Planning Beyond Infrastructures: The Third Sector In Douro And Alto Trãs-Os-Montes," ERSA conference papers ersa13p43, European Regional Science Association.
    7. George Emmanuel Halkos & Nickolaos Tzeremes, 2010. "Measuring regional economic efficiency: the case of Greek prefectures," The Annals of Regional Science, Springer, vol. 45(3), pages 603-632, December.
    8. C. Alicia Avilés Zugasti & Rosario Gómez García & José Sánchez Maldonado, 2003. "Capital público, actividad económica privada y efectos desbordamiento: Un análisis por Comunidades Autónomas de los sectores Industria y Construcción en España," Hacienda Pública Española, IEF, vol. 165(2), pages 25-51, June.

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