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Entry in Greek Manufacturing Industry: Athens vs the Rest of Greece

Athens University of Economics and Business, 76 Patission Street, Athens 10434, Greece

V. Anagnostaki

Athens University of Economics and Business, 76 Patission Street, Athens 10434, Greece

The paper reports an attempt to estimate the determinants of entry in Greek manufacturing industry in the 1984-87 period and to identify the differences between locational entry preferences. Entry in Athens is found to be hesitant with respect to factors such as profitability and increased competition. Conversely, entry in the rest of the country is strongly related to expected profits and safe markets, negatively affected by relative labour costs and indifferent to international competition threats. The 'healthier' approach of regional entry is enhancing regional development prospects and partly justifies the strict regional policies of the 1980s.

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