The persistence of profits in the Greek manufacturing industry, 1963–88

The objective of this article is to evaluate empirically the profit rate persistence in the case of the Greek manufacturing industry (1963–88). More specifically, we address ourselves to two questions: first, do industrial profit rates eventually converge on a common rate? and secondly, what are the factors that affect the speed of adjustment of industrial profit rates? Our results suggest: a high persistence of profit rates for most industrial sectors; a generally high permanent component of the profit rates with substantial variations among sectors; and a similarity with other studies of industrialized countries with regards to the factors (concentration ratio, advertising intensity, export intensity, capital intensity etc.) affecting the speed of adjustment.