Recent research by Christodoulakis and Segoura applying Aschauer's methodology to national lime-series data of the manufacturing sector as a whole has come to the conclusion that the contribution of public infrastructure capital to the growth of the manufacturing sector in Greece is significant and comparable to the contribution of private manufacturing capital. Our paper examines whether this conclusion can be extended to contribute to the explanation of the regional differentiation of the growth of manufacturing in Greece. Using regional data for 41 spatial units we employed MunneII's extension of Aschauer's framework to regional analysis in order to test econometrically whether the regional differentiation of manufacturing output performance in the years 1991 and 1992 has been influenced by the regional allocation of public infrastructure investment. Our conclusion is that, in contrast to its important role in the evolution of manufacturing output at the national level, public infrastructure capital has not been a significant determinant of the differentiation of manufacturing output at the regional level. This differentiation is accounted for satisfactorily by the inputs of private capital and labour.
