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Capital allocation in the Greek regions

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  • Liargovas, Panagiotis G.
  • Daskalopoulou, Irene F.

Abstract

The present study analyses the location of new economic activities in the 51 Greek prefectures (NUTS III level) as the outcome of agglomeration economies and other factors that are acknowledged as determinants of new firm location. Cross-section data referring to the location choices of firms in manufacturing, commerce, services and tourism within 2005 are used. Results indicate that agglomeration effects largely determine a region’s attractiveness and appropriateness as an investment location. In addition, the effect of other factors such as demand, expected profit and cost conditions is identified as important. Interestingly, regional characteristics seem to affect in different ways the location of start-ups belonging to different industries.

Suggested Citation

  • Liargovas, Panagiotis G. & Daskalopoulou, Irene F., 2011. "Capital allocation in the Greek regions," MPRA Paper 30116, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30116
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    Cited by:

    1. Klimis Vogiatzoglou & Theodore Tsekeris, 2013. "Spatial Agglomeration of Manufacturing in Greece: Sectoral Patterns and Determinants," European Planning Studies, Taylor & Francis Journals, vol. 21(12), pages 1853-1872, December.
    2. Jan Ole Rypestøl, 2017. "Regional industrial path development: The role of new entrepreneurial firms," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-19, December.
    3. Tyralis, Hristos & Mamassis, Nikos & Photis, Yorgos N., 2017. "Spatial analysis of the electrical energy demand in Greece," Energy Policy, Elsevier, vol. 102(C), pages 340-352.
    4. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).

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    More about this item

    Keywords

    entrepreneurship; start-ups; location; agglomeration economies; regional development; data envelopment analysis; Greece;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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