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Material Intensiveness and its Influence on the Effectiveness of Production

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  • B. Dobrovinskii

Abstract

The reduction of the material intensiveness of the social product is one of the main ways of increasing economic effectiveness, which is determined by the combination of material intensiveness, the output-capital ratio, and the expenditures of live labor. (1) Under certain conditions one of the partial indices, e.g., capital intensiveness, may grow while outlays of material working capital and live labor per unit of output decline. The saving thus achieved not infrequently outweighs the increase in outlays of fixed capital. As a result of such dynamics of partial indices, there may be an improvement in the effectiveness index on the whole, as was the case in postwar Japan. The compensatory influence of material intensiveness appeared against a background of sharply increased consumption of raw materials and supplies in connection with the rapid and considerable expansion of the volume of production.

Suggested Citation

  • B. Dobrovinskii, 1973. "Material Intensiveness and its Influence on the Effectiveness of Production," Japanese Economy, Taylor & Francis Journals, vol. 2(2), pages 77-97.
    • Handle: RePEc:mes:jpneco:v:2:y:1973:i:2:p:77-97
    DOI: 10.2753/JES1097-203X020277
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