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Urban growth and productivity: the case of Greece


  • Louri, Helen


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.

Suggested Citation

  • Louri, Helen, 1988. "Urban growth and productivity: the case of Greece," MPRA Paper 29934, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29934

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    References listed on IDEAS

    1. Ronald L. Moomaw, 1981. "Productivity and City Size: A Critique of the Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 96(4), pages 675-688.
    2. John S. Chipman, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 347-385.
    3. 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 494-494.
    4. Henderson, J. V., 1982. "The impact of government policies on urban concentration," Journal of Urban Economics, Elsevier, vol. 12(3), pages 280-303, November.
    5. Henderson, J Vernon, 1983. "Industrial Bases and City Sizes," American Economic Review, American Economic Association, vol. 73(2), pages 164-168, May.
    6. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
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    Cited by:

    1. Daniel J Graham, 2009. "Identifying urbanisation and localisation externalities in manufacturing and service industries," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 63-84, March.
    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. 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.
    5. Ioannis Chorianopoulos, 2008. "Institutional Responses to EU Challenges: Attempting to Articulate a Local Regulatory Scale in Greece," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 32(2), pages 324-343, June.
    6. 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.
    7. Lourens Broersma & Jan Oosterhaven, 2009. "Regional Labor Productivity In The Netherlands: Evidence Of Agglomeration And Congestion Effects," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 483-511.

    More about this item


    urbanisation; labour productivity; manufacturing;

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity


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