Capital and labour productivity convergence of manufacturing industry in the regions of Greece
AbstractGiven that spatially uneven industrial growth is a prime topic in economic geography, it is surprising that changing regional productivity is a relatively understudied area. However, there are clear signs that this situation has started to change lately. Recent findings in the field of international economics regarding productivity convergence have led to a proliferation of studies focused on the sources of this phenomenon at the regional scale, with structural change and technological diffusion prominent. This paper explores the process of manufacturing productivity convergence in the regions of Greece. The first issue to be addressed is methodological and concerns the evolution of current thinking about productivity in regional analysis. Why is it the case that more attention seems to have been paid to the input factors of production, especially labour, rather than their productive use? Definitional issues in the measurement of productivity follow next. The main aim of the research is to estimate and understand the evolution of regional manufacturing productivity in Greece during the period 1984-1993. Detailed econometric analysis in this case is precluded by inadequate data, but rather more straightforward comparative analysis of labour and capital productivity clearly points to a significant convergence. A variety of approaches are then employed in an attempt to isolate and account for the forces behind regional productivity dynamics in Greece. Key words: capital productivity, convergence, labour productivity, regional disparities, uneven growth, Greek regions.
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