Regional policy and investment behaviour: The case of Greece, 1971-1982

Helen Louri

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Regional policy; Investment; Incentives; Greece; Manufacturing (search for similar items in EconPapers)
JEL-codes: L25 L52 R58 (search for similar items in EconPapers)
Date: 1989
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:40229

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