The Performance of Manufacturing in the European Union in the Context of Agricultural Economics - The Agricultural Economics of the 21st Century - page 37

industrial output, the degree of specialization of the industries, and spatial vari-
ables, and confirmed the presence of the dynamic Verdoorn law. This author, one
year before Angeriz et al. ( 2008 ), had already analyzed this law for the European
regional manufacturing, in the period 1986-2002, considering spatial autocorrela-
tion effects, and found, again, robust conclusions about this law. More recently,
Alexiadis and Tsagdis ( 2010 ) tested the Verdoon law, with several specifications,
accounting for variables such as the manufacturing agglomeration and the spatial
interaction, in 109 regions of 12 European Union countries, across the period 1977-
2005. The results confirm the existence of circular and cumulative processes. Some
years before, Alexiadis and Tsagdis ( 2006 ) analyzed this law in the Greek regions,
with different specifications, namely to capture spatial effects, and found results
that support the Verdoorn relationship.
In another perspective, considering the Verdoorn law with other regularities, in
the context of the Kaldor laws, there are, also many studies. Drakopoulos and
Theodossiou ( 1991 ) analyzed the Kaldor theory in the Greek economy, from 1967
to 1988, and the results are consistent with the theory. Pons-Novell and Viladecans-
Marsal ( 1999 ), considering the Kaldor laws, tested the Verdoorn law in the
European regions over the period 1984-1992, accounting for the spatial autocorre-
lation aspects. The results are consistent with the previsions of these laws. Consid-
ering cross-country data for developing countries, in the period 1960-1994, Necmi
( 1999 ) analyzed the Kaldor laws with supporting results. In a similar way, Pieper
( 2003 ) found several results for 30 developing countries that support the Kaldor
interpretation of the growth processes, using time series data disaggregated at a
sectorial level. In another economy and context, Wells and Thirlwall ( 2003 ) tested
these laws across 45 African countries, during the period 1980-1996 and concluded
the presence of these laws. Juarez and Leobardo ( 2011 ) applied the Kaldor theory in
the Mexican regions, namely from 1993 to 2010, and concluded about the impor-
tance of the manufacturing sector. McCausland and Theodossiou ( 2012 ) testing the
Kaldor laws found that the increasing returns appear more in the manufacturing
sector and less in the services sector. Recently, Katrakilidis et al. ( 2013 ) analyzed
these laws in the Greek economy over the period 1970-2006 and their conclusions
validated the three laws.
Other studies aim to find relationships between the Verdoorn law and other
theories. For example, Erixon ( 2005 ) analyzed the relationship between
Schumpeterian and Keynesian economics. Ryzhenkov ( 2009 ) studied the relation
between the Verdoorn law and the Ricardian relationship between employment and
returns. Kosfeld and Dreger ( 2006 ) analyzed the Verdoorn and the Okun laws for
Unified Germany, considering spatial autocorrelation aspects, during the 1990s.
Fase and Winder ( 1999 ) analyzed the Verdoorm and Baumol laws for the
manufacturing and services sectors of the Netherlands, in the period 1956-1993,
considering other variables such as employment, the wage rate, and the unit labor
cost. The results are more consistent with the Baumol law than with the

Verdoorn law.
Finally, some studies, such as that of McCombie and Roberts ( 2007 ), investi-
gated the static (constant returns to scale)-dynamic (increasing returns to scale)