Louri, Helen (1989): Regional policy and investment behaviour: The case of Greece, 1971-1982. Published in: Regional Studies , Vol. 23, No. 3 : pp. 231-239.
Download (1MB) | Preview
The present paper reports an attempt to evaluate the relative effects of regional policy on investment in Greek manufacturing industry during 1971-82. A generalized neoclassical model of investment behaviour is used allowing for separate estimates of the effects of different policy instruments. Both regional investment incentives and infrastructure expenditures were found to exert a significant influence on capital formation. Simulations with alternative policy cornbinations showed that if incentives were accompanied by more equally distributed infrastructure expenditures the cost of the policy would be the same but its effects would be enhanced: an equal amount of investment would be created with a fairer regional distribution.
|Item Type:||MPRA Paper|
|Original Title:||Regional policy and investment behaviour: The case of Greece, 1971-1982|
|Keywords:||Regional policy; Investment; Incentives; Greece; Manufacturing|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy
L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy ; Sectoral Planning Methods
|Depositing User:||Helen Louri|
|Date Deposited:||08 Aug 2012 14:50|
|Last Modified:||29 Aug 2016 16:20|
ARMSTRONG H. and TAYLOR J. (1985) Regional Economics arid Policy. Philip Allan, Oxford.
BEAN C. R. (1981) An econometric model of manufacturing investment in the UK, Econ. J. 91, 106-21.
BERNANKE B. S. (1983) The determinants of investment: another look, Am. Econ. Ass. Pap. Proc. 73, 71-5.
BOSWORTH B. (1982) Capital formation and economic policy, Brookings Pap. Econ. Activ. 2, 273-326.
CARLINO G. (1979) Increasing returns to scale in metropolitan manufacturing, J. Reg. Sci. 19, 363-73.
EISNER R. (1978) Factors in business investment, General Series no. 102, National Bureau of Economic Research, New York.
FELDSTEIN M. S. and FLEMMING. J. S . (1971) Tax policy, corporate savings and investment behaviour in Britain, Rev. Econ. Studies 38, 415-34.
FELDSTEIN M. S. and SUMMERS L. ( 1978) Inflation, tax rules and the long-term interest rates, Brookings Pap. Econ. Activ. 1, 61-9.
HALL R. and JORGENSON D. (1971) Application of the theory of optimum capita1 accumulation, in FROMM G . (Ed.) Tax Incentives and Capital Spending, pp. 9-60. The Brookings Institution, Washington, DC.
HENDERSON V. J. (1986) Efficiency of resource usage and city size, J. Urban Econ. 19, 47-70.
KOTTIS G. (1980) Decentralisation of industry and regional development, IOBE, Special Studies no. 7, Athens.
LOURI H. (1985) Regional policy and investment in Greek manufacturing industry, unpublished Ph.D. thesis, University of Oxford.
LOURI H. (1988) Urban growth and productivity: the case of Greece, Urban Studies 25, 433-8.
LUND P. J. (1971) Investment: the study of an economic aggregate, Mathematical Economics Texts no. 7, Oliver & Boyd, Edinburgh.
MOOMAW R. (1981) Productivity and city size: a critique of the evidence, Quart. J. Econ. 96, 675-88.
NATIONAL STATISTICAL SERVICE OF GREECE (1972-82) Statistical Yearbook, annual issues, NSSG, Athens.
NICKELL S. J. (1978) The Investment Decisions of Firms. Cambridge University Press, Cambridge.
PATSOURATI.S V. (1980) The Greek corporate income tax: some aspects of business tax harmonisation, unpublished Ph.D. thesis, University of Glasgow.
RICHARDSON H. (1978) Regional and Urban Economics. Penguin, Harmondsworth, Middx.
SEGAL D. (1976) Are there returns to scale in city size? Rev. Econ. Statist. 58, 339-50.
SVEIKAUSKAS L. (1972) The productivity of cities, Quart. J . Econ. 89, 393-413.