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Public Infrastructure, Private Input Demand, and Economic Performance of the Greek Industry

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  • Emmanouel C. Mamatzakis

    (Queen Mary and Westfield College, University of London)

Abstract

In this paper we examine the effects of the services provided by public infrastructure on the cost structure, private input demands, and productivity performance of twenty two-digit Greek manufacturing industries. The model of the paper is the dual cost function. Although the effects of public infrastructure varies across different industries our results provide evidence in favour of a productive public infrastructure. In addition, public infrastructure is found to be complement to private capital stock and substitute to labour. Specifically, the cost-saving impact of public infrastructure ranges from 0.02 percent in food manufacturing industry to 0.78 percent in wood and cork. Moreover, empirical evidence is provided in favour of the argument that the productivity growth of the majority of the twenty Greek manufacturing industries has been depressed by the observed shortage in public infrastructure in the eighties.

Suggested Citation

  • Emmanouel C. Mamatzakis, 1999. "Public Infrastructure, Private Input Demand, and Economic Performance of the Greek Industry," Working Papers 406, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:406
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    File URL: https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/1999/items/wp406.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Federici, Andrea, 2018. "Il rapporto tra capitale pubblico e altre variabili macroeconomiche: un'applicazione empirica [The relationship between public capital and other macroeconomic variables: an empirical application]," MPRA Paper 88516, University Library of Munich, Germany.
    2. Federici, Andrea, 2018. "Il rapporto tra capitale pubblico e altre variabili macroeconomiche: analisi della letteratura [The relationship between public capital and other macroeconomic variable: a literature review]," MPRA Paper 88515, University Library of Munich, Germany.

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    More about this item

    Keywords

    Dual cost function; Productivity growth; Infrastructure;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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