The role of capital - labour and main energy inputs in the performance of greek manufacturing sector

Abstract

In recent years a number of authors have examined the degree if substitutability between labour and
capital in Greek industries using time series data for the period 1960-1975. Since, the early seventies,
however the traditional inputs, capital-labour, ceased to be the only important factor in production
process of Greek manufacturing. Energy, i.e. crude oil, electricity and diesel, emerged as important input.
The present study estimates for the first time own and cross price elasticities for capital, labour, crude oil,
electricity and diesel, applying a cost function approach to the time series for the period 1970-1990.