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Utilization of Fixed Capital and Soviet Industrial Growth


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  • Kontorovich, Vladimir
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    Growth rates of output and factor productivity in Soviet industry fluctuate around a long-term downward trend. These fluctuations can be partially explained by fluctuations in the growth of services of capital. The capacity utilization rate is taken as a proxy for the extent of utilization of capital stock. Variations in the capacity utilization rate explain a significant part of the changes in the rate of growth of total factor productivity between 1970-83. Declines in the capacity utilization rate are caused by errors in the allocation of investment, which create an imbalance of capacities between raw-materials and manufacturing sectors. Copyright 1990 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Economics of Planning.

    Volume (Year): 23 (1990)
    Issue (Month): 1 ()
    Pages: 37-50

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    Handle: RePEc:kap:ecopln:v:23:y:1990:i:1:p:37-50

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    Cited by:
    1. Stefano Battilossi & James Foreman-Peck & Gerhard Kling, 2008. "European business cycles and economic policy, 1945-2007," Working Papers in Economic History wp08-13, Universidad Carlos III, Departamento de Historia Económica e Instituciones.


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