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Utilization of Fixed Capital and Soviet Industrial Growth

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  • Kontorovich, Vladimir

Abstract

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

Suggested Citation

  • Kontorovich, Vladimir, 1990. "Utilization of Fixed Capital and Soviet Industrial Growth," Economic Change and Restructuring, Springer, vol. 23(1), pages 37-50.
  • Handle: RePEc:kap:ecopln:v:23:y:1990:i:1:p:37-50
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    Cited by:

    1. Battilossi, Stefano & Foreman-Peck, James & Kling, Gerhard, 2008. "European business cycles and economic policy, 1945-2007," IFCS - Working Papers in Economic History.WH wp08-13, Universidad Carlos III de Madrid. Instituto Figuerola.

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