Measures on Capacity Utilization Rate and Productivity Estimation for Chinese Manufacturing Firms
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| Title | Measures on Capacity Utilization Rate and Productivity Estimation for Chinese Manufacturing Firms
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| Author | Yu Miaojie, Jin Yang and Zhang Rui |
| Organization | National School of Development, Peking University |
| Email | mjyu@nsd.pku.edu.cn；jinyang@pku.edu.cn；rayzhangrui23@126.com |
| Key Words | Capacity Utilization Rate; Productivity; Overcapacity |
| Abstract | The key to understand overcapacity is to measure capacity utilization rate. Using capital depreciation rate as proxy variable, we develop a method to measure capacity utilization rate and estimate productivity in production function analysis. Our method specifies the conception of capacity utilization rate and productivity. And it is highly extendable. We use our method to estimate the capacity utilization rate of Chinese manufacturing firms from 1998 to 2007 as well as 2011 to 2013. While Chinese firms experienced a rise in capacity utilization rate during the period, there are various forms of heterogeneity among firms. We find firms with higher productivity, lower capital intensity, higher exporting ratio and profit ratio tend to have higher capacity utilization rate. We also analysis the capacity utilization rate of steel industry. |
| Serial Number | WP1277 |
| Time | 2018-05-29 |
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