EU infrastructure investment and productivity in Greek manufacturing

This paper analyses the effect of public infrastructure on productivity and private purchased inputs of Greek manufacturing. The results obtained indicate that public infrastructure is cost saving and raises demand for private capital, though some variation in estimations across industries and over time exists. The findings provide justification for the importance that EU, through its cohesion and structural funds, has assigned to infrastructure investment so as to assist the process of real convergence of lagging member states. (c) 2006 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.