Thus, it has operating practice with respect to the use become important to adjust for capacity of installed machines and the deployment utilization in estimating productivity func- of workers is the production capacity of the tion. [...] To reflect in the non-manufacturing goods-producing the importance of each firm in an industry industry group can be partly explained by group, capacity utilization for the indus- the high volatility of commodity price and try is the average of capacity utilization of economic activities in the mining sector. [...] For a comparison between our measured The Evaluation of the Mea- capacity utilization and the official one, the sured Capacity Utilization official capacity utilization is normalized to the average of CU1 and CU2 for manufac- How well does our estimated capacity turing over 2000-2017. [...] utilization capture the actual capacity uti- The movement pattern of the official ca- lization? In this section, we assess them by pacity utilization is in general similar to correlating our measures with the official that of our measures, although the correla- measure of capacity utilization and with tion between our measures and the official economic growth. [...] However, the size of the effect is Capacity Utilization and the not influenced by the presence of capac- Economic Performance of In- ity utilization.
- Pages
- 22
- Published in
- Canada
