Trade liberalization and capacity utilization: New evidence from the Turkish rubber industry
Abstract
This study empirically tests the hypothesis that trade liberalization increases capacity utilization. It calculates capacity utilization for the Turkish rubber industry by using a production theory framework. More specifically, plant-level capacity utilization levels are calculated using a Generalized Leontief cost function system. Capacity utilization levels were low but improved when the trade regime shifted from a restrictive to a more liberalized one. The size and location of plants were two significant factors which created capacity utilization differences within the industry. However, capacity utilization levels appeared to improve primarily because of trade liberalization.Download Info
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Bibliographic Info
Article provided by Springer in its journal Empirical Economics.
Volume (Year): 23 (1998)
Issue (Month): 4 ()
Pages: 561-571
Note: received: January 1996/final version received: March 1997
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Related research
Keywords: Trade liberalization · capacity utilization · Turkey;Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Akpan, Sunday Brownson & Udo, U.J. & Essien, Ubon A., 2011. "Influence of firm related factors and industrial policy regime on technology based capacity utilization in sugar industry in Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(3), September.
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