Structural constraints and excess capacity : An international comparison of manufacturing firms

Dagdeviren, Hulya (2016) Structural constraints and excess capacity : An international comparison of manufacturing firms. Development Policy Review, 34 (5). 623–641. ISSN 1467-7679
Copy

Excess capacity results in real and opportunity costs as well as lower factor productivity. Conventionally, variation in capacity utilisation rates has been explained with reference to the business cycles and market imperfections. In this article, we show that these two factors do not always fully explain the causes of idle capacity. Our ndings suggest that manufacturing rms in low-income countries tend to have lower capacity utilisation rates than those in middle- and upper-middle-income groups. To explain this peculiarity, it is proposed in this article that the level of excess capacity partly depends on supply-side conditions and institutional variables. The ndings provide strong support for this view and suggest that there are gains to be made in the manufacturing industries of the lower-income countries through improvements in the structural conditions.

picture_as_pdf

picture_as_pdf
Accepted_Manuscript.pdf
subject
Submitted Version

View Download

Atom BibTeX OpenURL ContextObject in Span OpenURL ContextObject Dublin Core MPEG-21 DIDL EndNote HTML Citation METS MODS RIOXX2 XML Reference Manager Refer ASCII Citation
Export

Downloads