Title

Capacity Utilization in Indian Manufacturing: A Non-Parametric Analysis of State Level Data

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Abstract

In this paper, I use the non-parametric method of Data Envelopment Analysis to obtain primal measures of capacity utilization in the overall manufacturing sector across states in India for the period 1998-99 through 2007-02. Capacity utilization is measured using two models – one in which capital is the only fixed input while other inputs are variable and another in which labor is also treated as a quasi-fixed input in addition to capital. A second stage regression analysis examines the main determinants of variation in capacity utilization across states. The relationship between capacity utilization and energy efficiency is also examined.

Academic Division

Economics

Disciplines

Economics

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