Urban growth and productivity: the case of Greece
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.
|Date of creation:||Jan 1988|
|Publication status:||Published in Urban Studies 5.25(1988): pp. 433-438|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- 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.
- Henderson, J. V., 1982. "The impact of government policies on urban concentration," Journal of Urban Economics, Elsevier, vol. 12(3), pages 280-303, November.
- 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.
- 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.
- 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.
- Henderson, J Vernon, 1983. "Industrial Bases and City Sizes," American Economic Review, American Economic Association, vol. 73(2), pages 164-168, May.
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