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Measuring Productive Capacity Realization Of Bangladesh Food Manufacturing: A Random Coefficient Frontier Approach

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  • RUHUL AMIN SALIM

    (Department of Economics & Finance, College of Commerce and Economics, Sultan Qaboos University, Al Khod 123, Muscat Sultanate of Oman, Oman)

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.

Suggested Citation

  • Ruhul Amin Salim, 2001. "Measuring Productive Capacity Realization Of Bangladesh Food Manufacturing: A Random Coefficient Frontier Approach," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 46(02), pages 195-209.
    • Handle: RePEc:wsi:serxxx:v:46:y:2001:i:02:n:s0217590801000292
    DOI: 10.1142/S0217590801000292
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    Keywords

    Capacity realization; Production function;

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