Measuring capacity utilization using a short-run cost function :
Author
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2003, Issue 301-340 (31 Dec. 2003)11 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2003-12-31
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Topics
Abstract EN
The main objective of this study is to measure and analyze one of the major components of economic performance, namely capacity utilization, in Bahrain (one of the six Gulf Cooperation Council, GCC, countries) economy over the time period 1984-1999.
Exploiting recent developments in dual cost theory, a well-defined method for empirical estimation of capacity utilization was established.
An empirical model, Cobb-Douglas short-run variable cost function, was employed as an application of this dual-cost estimate of capacity utilization in Bahrain economy.
The findings of this study showed that the presently structured industries in the Bahrain economy, in general, have experienced capacity underutilization.
This implies that there is significant room for increasing production levels with no additional capital required.
Three main considerations are given for full capacity utilization : rationalization of the existing structure of some industries and limitations of new entry; regional integration creating larger markets for existing industrial capacity; and technological adaptation that hold the efficient minimum economic scale of industries for small-market economy such as Bahrain.
American Psychological Association (APA)
Shabib, Basim. 2003. Measuring capacity utilization using a short-run cost function :. Economic Research Forum : Working Paper Series،Vol. 2003, no. 301-340.
https://search.emarefa.net/detail/BIM-147860
Modern Language Association (MLA)
Shabib, Basim. Measuring capacity utilization using a short-run cost function :. Economic Research Forum : Working Paper Series No. 301-340 (Dec. 2003).
https://search.emarefa.net/detail/BIM-147860
American Medical Association (AMA)
Shabib, Basim. Measuring capacity utilization using a short-run cost function :. Economic Research Forum : Working Paper Series. 2003. Vol. 2003, no. 301-340.
https://search.emarefa.net/detail/BIM-147860
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references.
Record ID
BIM-147860