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

  • Nicholas Apergis

    (University of Macedonia, Thessaloniki, Greece)

  • Spyros Zikos

    (University of Macedonia, Thessaloniki, Greece)

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.

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File URL: http://www.esr.ie/Vol34_5Apergis.pdf
File Function: First version, 2003
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 34 (2003)
Issue (Month): 1 ()
Pages: 87–104

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Handle: RePEc:eso:journl:v:34:y:2003:i:1:p:87-104
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  18. A. P. Thirlwall, 1983. "A Plain Man's Guide to Kaldor's Growth Laws," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 345-358, April.
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