MEASURING PRODUCTIVE CAPACITY REALIZATION OF BANGLADESH FOOD MANUFACTURING: A RANDOM COEFFICIENT FRONTIER APPROACH

Ruhul Salim

The Singapore Economic Review (SER), 2001, vol. 46, issue 02, 195-209

Abstract: The aim of this paper is to empirically estimate the firm level productive capacity realization (PCR) by using the stochastic coefficient frontier production function. Empirical estimations have been done using firm level data from Bangladesh food manufacturing covering the inter-temporal periods 1988, 1992 and 1996. The results suggest that there are considerable levels of unrealized production capacity in the food processing sector and very little improvement occurred in realization of productive capacity after the implementation of economic reforms. So, there is enough room for increasing output by realizing substantial unrealized capacity.

Keywords: Capacity realization; Production function (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1142/S0217590801000292

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