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Productivity Growth and Capacity Utilization in the Australian Gold Mining Industry: A Short-Run Cost Analysis

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  • B Shebeb

Abstract

This paper uses a stochastic short-run translog cost function to estimate productivity growth, adjusted for capacity utilisation effects, in the Australian gold mining industry over the time period 1968/69-1994/95. Productivity growth is measured and adjusted for the changes in capacity utilisation. It is found that a large portion of the cost-measure (observed) productivity growth may be attributed to technological change. Changes in capacity utilisation are found to have insignificant impacts on productivity growth in the Australian gold mining industry. Biases from technological change and capacity utilisation are also analysed. Technological change is found to be labour-saving and energy and intermediate inputs-using, but neutrality of capacity utilization cannot be rejected.

Suggested Citation

  • B Shebeb, 2002. "Productivity Growth and Capacity Utilization in the Australian Gold Mining Industry: A Short-Run Cost Analysis," Economic Issues Journal Articles, Economic Issues, vol. 7(2), pages 71-82, September.
    • Handle: RePEc:eis:articl:202shebeb
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    Cited by:

    1. Jeremy Smith, 2004. "Productivity Trends in the Gold Mining Industry in Canada," CSLS Research Reports 2004-08, Centre for the Study of Living Standards.
    2. Shebeb, Bassim, 2006. "Measuring Productivity Growth in the Bahraini Agriculture and Fisheries Sector," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139900, Australian Agricultural and Resource Economics Society.
    3. Bassim Shebeb & Nadhem Al-Saleh, 2010. "Economic Growth in Bahrain: The Contribution of Multifactor Productivity," Working Papers 558, Economic Research Forum, revised 10 Jan 2010.
    4. Bassim Shebeb, 2003. "Measuring Capacity Utilization Using A Short-Run Cost Function: An Application to Bahrain Economy," Working Papers 0305, Economic Research Forum, revised 02 2003.

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