TECHNOLOGICAL PROGRESS AND RETURNS TO SCALE IN GREEK MANUFACTURING: AN INTER-INDUSTRY ANALYSIS (1970-1990)
Abstract
THE PURPOSE OF THIS RESEARCH WAS TO ESTIMATE ALL THE TECHNICAL CHARACTERISTICS OF PRODUCTION IN GREEK MANUFACTURING I.E. RETURNS TO SCALE, TECHNOLOGICAL PROGRESS, BASES OF TECHNOLOGICAL PROGRESS, ELASTICITIES OF SUBSTITUTION, OWN AND CROSS PRICE ELASTICITIES AND TO CHECK THE HYPOTHESIS OF HOMOTHETICITY. THE TRANSLOG COST FUNCTION WAS USED FOR THE EMPIRICAL ESTIMATION ALL OF THAT CHARACTERISTICS. FOR THE EMPIRICAL SPECIFICATION OF THE ADOPTED FUNCTION WAS USED THREE INPUTS. CAPITAL, LABOUR AND ENERGY. THE 1.2.E.F METHOD WAS USED FOR EMPIRICAL ESTIMATION. THE MAIN CONCLUSIONS CAN BE MAKED AS FOLLOWS: A) THE OWN PRICE ELASTICITY FOR THE THREE INPUTS IS SMALLER THAN 1. B) THE ALLEN-PARTIAL ELASTICITIES OF SUBSTITUTION ARE SMALLER THAN 1 EXCEPT OF LABOUR AND ENERGY. C)THERE ARE POSITIVE RETURNS TO SCALE IN FIVE INDUSTRIES OUT OF TEN AND D) THERE ARE EVIDENCE THAT THE TECHNOLOGICAL PROGRESS WAS NOT NEUTRAL.
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