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Urban growth and productivity: the case of Greece

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  • Louri, Helen

Abstract

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.

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  • 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

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    1. Harry W. Richardson, 1976. "The Argument for very Large Cities Reconsidered: A Comment," Urban Studies, Urban Studies Journal Limited, vol. 13(3), pages 307-310, October.
    2. Ronald L. Moomaw, 1981. "Productivity and City Size: A Critique of the Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(4), pages 675-688.
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    Citations

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    Cited by:

    1. Evangelos Rasvanis & Vassilis Tselios, 2023. "Do geography and institutions affect entrepreneurs’ future business plans? Insights from Greece," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-21, December.
    2. Stuart Donovan & Thomas de Graaff & Henri L. F. de Groot & Carl C. Koopmans, 2024. "Unraveling urban advantages—A meta‐analysis of agglomeration economies," Journal of Economic Surveys, Wiley Blackwell, vol. 38(1), pages 168-200, February.
    3. 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, August.
    4. 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.
    5. Ioannis Chorianopoulos, 2002. "Urban Restructuring and Governance: North-South Differences in Europe and the EU URBAN Initiative," Urban Studies, Urban Studies Journal Limited, vol. 39(4), pages 705-726, April.
    6. Evangelos Rasvanis & Vassilis Tselios, 2021. "Do agglomeration economies matter where natural endowments are? Lessons from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1009-1024, June.
    7. William F. Lever, 1999. "Competitive Cities in Europe," Urban Studies, Urban Studies Journal Limited, vol. 36(5-6), pages 1029-1044, May.
    8. 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.
    9. Louri, Helen, 1989. "Regional policy and investment behaviour: The case of Greece, 1971-1982," MPRA Paper 40229, University Library of Munich, Germany.
    10. 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.
    11. 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.
    12. 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.

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    More about this item

    Keywords

    urbanisation; labour productivity; manufacturing;
    All these keywords.

    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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