IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v4y2012i5p540-559.html
   My bibliography  Save this article

Capacity growth and utilisation performance under econometric framework: a case study on Indian glass industry

Author

Listed:
  • Sarbapriya Ray

Abstract

This analytical paper attempts to assess and analyse trend growth in the rate of capacity utilisation (CU) in India's glass sector at aggregate level over a period from 1979-1980 to 2003-2004. In this study, optimal output is defined as the minimum point on the firm's short-run average total cost curve and the rate of CU is merely ratio of its actual output to capacity output level. Choice theoretic framework is adopted to estimate the optimal capacity output. The empirical findings suggest that there exist considerable variations in the CU rates over years within same industry. There has been declining trend in the growth rate of CU in this industry during post-reforms period due to sluggish growth in actual output resulting from stagnated demand probably and rapid expansion of capacity output as a result of abolition of licensing rule consequent to economic reform.

Suggested Citation

  • Sarbapriya Ray, 2012. "Capacity growth and utilisation performance under econometric framework: a case study on Indian glass industry," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(5), pages 540-559.
    • Handle: RePEc:ids:ijecbr:v:4:y:2012:i:5:p:540-559
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=48778
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:4:y:2012:i:5:p:540-559. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.