Convergence and Hierarchy of Industrial Profit Rates: The Case of Greek Manufacturing

Abstract

The present paper examines the behavior of profit rate differentials of the manufacturing sector of the Greek economy for the period 1963-86. Specifically, we examine the stability of profit rate differentials over time, the existence of a given hierarchy of profit rates and the effect of the business cycle on the profit rate differentials. We find a mild tendency for convergence of profit rates, a slowly changing hierarchy of profit rates and a negative relationship between profit rate differentials and business cycles.