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Urban growth and productivity: the case of Greece

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  • Louri, Helen

Abstract

The present paper reports an attempt to estimate the role of urbanisation economies in Greek industry. Using a flexible form of production function obtained from a Taylor-series expansion of a polynomial it is estimated that the labour productivity of the manufacturing sector is five per cent higher with each doubling of urban population. The substantial advantages to urban production seem to be at the heart of the urbanisation process that accompanied industrialisation in Greece. The policy implications are that decentralisation policies may be justifiable on regional equity but not on economic efficiency grounds. Selection and promotion of a few urban centres in each region would be a more successful regional policy.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29934.

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Date of creation: Jan 1988
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Publication status: Published in Urban Studies 5.25(1988): pp. 433-438
Handle: RePEc:pra:mprapa:29934

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Keywords: urbanisation; labour productivity; manufacturing;

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References

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  1. Henderson, J Vernon, 1983. "Industrial Bases and City Sizes," American Economic Review, American Economic Association, vol. 73(2), pages 164-68, May.
  2. Chipman, John S, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 347-85, August.
  3. Moomaw, Ronald L, 1981. "Productivity and City Size? A Critique of the Evidence [Are There Returns to Scale in City Size?]. [Bias in the Cross Section Estimates of the Elasticity of Substitution]," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 675-88, November.
  4. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-50, August.
  5. Stanley M. Besen, 1968. "Education and Productivity in U.S. Manufacturing: Some Cross-Section Evidence," Journal of Political Economy, University of Chicago Press, vol. 76, pages 494.
  6. Henderson, J. V., 1982. "The impact of government policies on urban concentration," Journal of Urban Economics, Elsevier, vol. 12(3), pages 280-303, November.
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Cited by:
  1. Chorianopoulos, Ioannis, 2000. "Urban Restructuring And Governance: North-South Differences In Europe And The Eu Urban Initiatives," ERSA conference papers ersa00p379, European Regional Science Association.
  2. H. Louri & V. Anagnostaki, 1995. "Entry in Greek Manufacturing Industry: Athens vs the Rest of Greece," Urban Studies, Urban Studies Journal Limited, vol. 32(7), pages 1127-1133, August.
  3. Louri, Helen, 1989. "Regional policy and investment behaviour: The case of Greece, 1971-1982," MPRA Paper 40229, University Library of Munich, Germany.
  4. Daniel Graham, 2000. "Spatial Variation in Labour Productivity in British Manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 323-341.

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