scholarly journals Input cost, capacity utilization and substitution in the short run

1999 ◽  
Vol 1 (3) ◽  
pp. 239-262 ◽  
Author(s):  
Miguel A. Delgado ◽  
Jordi Jaumandreu ◽  
Ana Martín Marcos
Keyword(s):  
Capacity Utilization ◽  
Short Run ◽  
Input Cost

scholarly journals Roles of Political and Economic Environments on Agricultural Commodity Import Demand in Developing Economy: A Case Study of Rice Sub-Sector in Nigeria

2015 ◽  
Vol 7 (12) ◽  
pp. 84
Author(s):  
Sunday B. Akpan ◽  
Glory E. Emmanuel ◽  
Inimfon V. Patrick
Keyword(s):  
Exchange Rate ◽  
Capacity Utilization ◽  
Import Demand ◽  
Nominal Exchange Rate ◽  
Domestic Production ◽  
World Price ◽  
Long Run ◽  
The World ◽  
Short Run ◽  
Industrial Capacity

<p>Nigeria is currently the largest importer of milled rice in the world. The country has implemented several trade policies, set up institutions and incentives to boost domestic production with the intention to meet both domestic and international demands. Despite these attempts and favorable climatic, manpower and edaphic conditions in the country, Nigeria still spent millions of dollars on annual basis on rice imports. Based on this assertion, the study rather examined the roles of political and economic environments on rice import demand from 1960 to 2014 in Nigeria. Time series data were obtained from FAO, Central Bank of Nigeria and National Bureau of Statistics as well as World Bank. Augmented Dickey-Fuller-GLS unit root test showed that all series were integrated of order one. The long-run and short-run elasticity of rice import demand were determined using the techniques of co-integration and error correction models. The trend in rice import revealed that, the country had witnessed significant average positive exponential growth rate of about 15.975% in rice import from 1960 to 2014. The empirical results revealed that, the long run import demand function of rice responded negatively to the world price, industrial capacity utilization, nominal exchange rate, and the value of gross domestic production; whereas, it reacted positively to period of civilian rule, nominal value of external reserve, period of liberalization and the net volume of credit to the entire economy. The symmetric adjustment coefficient of rice import demand to a long run equilibrium stood at 39.65% per annum. In the short run, rice import had a significant negative and elastic relationship with the domestic and world price of rice; while it has significant positive inelastic association with external reserve and net credit to the economy. Based on these results; it is recommended that, the Nigeria government should designed programmes and incentives to boost industrial capacity utilization in the country. Markets determine nominal exchange rate should prevail in the economy. The country should regulate its foreign reserve policy by setting a threshold, above which excess deposit should be plough back to the domestic economy inform of investments rather than support excessive importation.</p>

Macroeconomic performance under evolutionary dynamics of employee profit-sharing

2020 ◽  
Vol 8 (4) ◽  
pp. 589-615
Author(s):  
Gilberto Tadeu Lima ◽  
Jaylson Jair da Silveira
Keyword(s):  
Economic Growth ◽  
Evolutionary Dynamics ◽  
Capacity Utilization ◽  
Profit Sharing ◽  
Policy Implications ◽  
Macroeconomic Performance ◽  
Employee Compensation ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper investigates the impact on capacity utilization and economic growth as variables driven by effective demand of income distribution featuring the possibility of profit-sharing with workers. Firms choose to compensate workers with either a base wage or a share of profits on top of this base wage. In accordance with robust empirical evidence, workers in sharing firms have higher productivity than workers in non-sharing firms. The distribution of employee compensation strategies and labor productivity across firms is evolutionarily time-varying. Two major results carrying relevant theoretical and policy implications are obtained. First, heterogeneity in employee compensation strategies across firms (and therefore earnings inequality across workers) may emerge as a long-run equilibrium outcome. Second, beyond the short run, a higher fraction of profit-sharing firms may result in either higher or lower rates of capacity utilization and economic growth.

scholarly journals Financial Development and Manufacturing Performance: The Nigerian Case

2018 ◽  
Vol 13 (1) ◽  
pp. 97-111 ◽  
Author(s):  
Ekundayo Mesagan ◽  
Ndubuisi Olunkwa ◽  
Ismaila Yusuf
Keyword(s):  
Private Sector ◽  
Money Supply ◽  
Financial Development ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Capacity Utilization ◽  
Value Added ◽  
Manufacturing Performance ◽  
Domestic Credit ◽  
Short Run

AbstractThe study focused on financial sector development and manufacturing performance in Nigeria over the period of 1981 to 2015. In the study, three indicators such as manufacturing capacity utilization, manufacturing output and manufacturing value added were employed to proxy manufacturing performance while money supply as a percentage of GDP, domestic credit to the private sector and liquidity ratio were employed to proxy financial development. The study observed that credit to the private sector and money supply positively but insignificantly enhanced capacity utilization and output, but negatively impacted value added of the manufacturing sector in the short run. There is slight improvement in the long where both money supply and credit to private sector exert positive impact manufactured output. Hence, it becomes crucial for commercial banks to make available certain percentage of their profits for industrial expansion in order to create linkages between both sectors.

scholarly journals Convergence in a neo-Kaleckian model with endogenous technical progress and autonomous demand growth

2019 ◽  
Vol 7 (3) ◽  
pp. 275-291 ◽  
Author(s):  
Won Jun Nah ◽  
Marc Lavoie
Keyword(s):  
Technical Progress ◽  
Capacity Utilization ◽  
Interactive Effects ◽  
Demand Growth ◽  
Adjustment Mechanism ◽  
Keynesian Model ◽  
Long Run ◽  
Short Run ◽  
Endogenous Technical Progress ◽  
Kaleckian Model

This paper introduces technical progress along the lines of the Kaldor–Verdoorn law within a neo-Kaleckian model of growth and distribution that incorporates the Sraffian supermultiplier mechanism. The key features of the model include the interactive effects of endogenous technical progress, the non-capacity-creating demand component that grows at an exogenous rate and, in its long-run version, a Harrodian adjustment mechanism. It turns out that, whereas the model converges towards the normal rate of capacity utilization, the main tenets of the Keynesian model are still valid in the long run as well as in the short run in the sense that all of the average rates of accumulation, capacity utilization, and technical progress are lower during the traverse after the propensity to save or the share of profits goes up. The conditions under which the productivity regime can be wage-led are examined, and the possible effects of an exogenous technical shift are also discussed.

Technical Changes and the Rate of Profit in the Canadian Wood, Furniture, and Paper Industries

1988 ◽  
Vol 20 (12) ◽  
pp. 1623-1643 ◽  
Author(s):  
M Webber ◽  
S Tonkin
Keyword(s):  
Paper Industry ◽  
Capacity Utilization ◽  
Market Prices ◽  
Rapid Changes ◽  
Short Run ◽  
Wood Furniture ◽  
Rate Of Profit ◽  
Dramatic Fall ◽  
Composition Of Capital ◽  
Profit Rates

In this paper the rate of profit is examined and the components of changes in the rate of profit are identified of the wood, furniture, and paper industries of Canada for the years 1952 to 1981. The rate of profit in the wood industry generally rose, until a dramatic fall since 1979 onwards; this fall was largely due to a collapse of market prices and to the effects of that collapse on the technical composition of capital (via changes in the rate of capacity utilization). Profit rates in the furniture industry have generally been rising because the rate of exploitation has risen, even though techniques of production have changed only slowly. In the paper industry profit rates have generally fallen, in response to rapid changes in technology. There is generally short-run variation in the technical composition of capital, which, therefore, is affected by market conditions as well as the technology embodied in fixed capital.

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