An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry

Maha Kalai

doi:doi:10.11648/j.jwer.20231202.14

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An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry

Maha Kalai

Published in Journal of World Economic Research (Volume 12, Issue 2)

Received: 22 August 2023 Accepted: 20 September 2023 Published: 26 December 2023

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Abstract

In this article, we tried to examine the various definitions stated in the literature about the performance and measurement of the capacity utilization rate, the total factor productivity and the technical efficiency. This study stresses two basic points. On the one hand, it gives an idea about the state of the Tunisian manufacturing industry of which it is essential to define the relevant guidance of such economic policy. On the other hand, it presents the stochastic methods, which are able to integrate the multifactor productivity in the cost model, and then the measurement of technical efficiency and the capacity utilization. Our results show that, despite the technological progress, there is a decline in productivity growth over the 1961/2014 period due to the growing inefficiency. The under-use of production capacity in the different sectors of the Tunisian manufacturing industry was considered a consequence of the excess capacity and the lack of efficiency attributed mainly to the lack of competition, which enables farms to operate below their frontier if they are protected on the market.

Published in	Journal of World Economic Research (Volume 12, Issue 2)
DOI	10.11648/j.jwer.20231202.14
Page(s)	81-98
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Capacity Utilization, Total Factor Productivity, Substitution Elasticity, Technical Efficiency, Tunisian Manufacturing Sectors

References

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APA Style

Kalai, M. (2023). An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry. Journal of World Economic Research, 12(2), 81-98. https://doi.org/10.11648/j.jwer.20231202.14

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ACS Style

Kalai, M. An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry. J. World Econ. Res. 2023, 12(2), 81-98. doi: 10.11648/j.jwer.20231202.14

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AMA Style

Kalai M. An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry. J World Econ Res. 2023;12(2):81-98. doi: 10.11648/j.jwer.20231202.14

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@article{10.11648/j.jwer.20231202.14,
  author = {Maha Kalai},
  title = {An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry},
  journal = {Journal of World Economic Research},
  volume = {12},
  number = {2},
  pages = {81-98},
  doi = {10.11648/j.jwer.20231202.14},
  url = {https://doi.org/10.11648/j.jwer.20231202.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20231202.14},
  abstract = {In this article, we tried to examine the various definitions stated in the literature about the performance and measurement of the capacity utilization rate, the total factor productivity and the technical efficiency. This study stresses two basic points. On the one hand, it gives an idea about the state of the Tunisian manufacturing industry of which it is essential to define the relevant guidance of such economic policy. On the other hand, it presents the stochastic methods, which are able to integrate the multifactor productivity in the cost model, and then the measurement of technical efficiency and the capacity utilization. Our results show that, despite the technological progress, there is a decline in productivity growth over the 1961/2014 period due to the growing inefficiency. The under-use of production capacity in the different sectors of the Tunisian manufacturing industry was considered a consequence of the excess capacity and the lack of efficiency attributed mainly to the lack of competition, which enables farms to operate below their frontier if they are protected on the market.
},
 year = {2023}
}

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TY  - JOUR
T1  - An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry
AU  - Maha Kalai
Y1  - 2023/12/26
PY  - 2023
N1  - https://doi.org/10.11648/j.jwer.20231202.14
DO  - 10.11648/j.jwer.20231202.14
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 81
EP  - 98
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20231202.14
AB  - In this article, we tried to examine the various definitions stated in the literature about the performance and measurement of the capacity utilization rate, the total factor productivity and the technical efficiency. This study stresses two basic points. On the one hand, it gives an idea about the state of the Tunisian manufacturing industry of which it is essential to define the relevant guidance of such economic policy. On the other hand, it presents the stochastic methods, which are able to integrate the multifactor productivity in the cost model, and then the measurement of technical efficiency and the capacity utilization. Our results show that, despite the technological progress, there is a decline in productivity growth over the 1961/2014 period due to the growing inefficiency. The under-use of production capacity in the different sectors of the Tunisian manufacturing industry was considered a consequence of the excess capacity and the lack of efficiency attributed mainly to the lack of competition, which enables farms to operate below their frontier if they are protected on the market.

VL  - 12
IS  - 2
ER  -

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Author Information

Maha Kalai

Faculty of Economics and Management of Sfax, University of Sfax, Sfax, Tunisia

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APA Style

Kalai, M. (2023). An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry. Journal of World Economic Research, 12(2), 81-98. https://doi.org/10.11648/j.jwer.20231202.14

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ACS Style

Kalai, M. An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry. J. World Econ. Res. 2023, 12(2), 81-98. doi: 10.11648/j.jwer.20231202.14

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AMA Style

Kalai M. An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry. J World Econ Res. 2023;12(2):81-98. doi: 10.11648/j.jwer.20231202.14

Copy | Download

@article{10.11648/j.jwer.20231202.14,
  author = {Maha Kalai},
  title = {An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry},
  journal = {Journal of World Economic Research},
  volume = {12},
  number = {2},
  pages = {81-98},
  doi = {10.11648/j.jwer.20231202.14},
  url = {https://doi.org/10.11648/j.jwer.20231202.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20231202.14},
  abstract = {In this article, we tried to examine the various definitions stated in the literature about the performance and measurement of the capacity utilization rate, the total factor productivity and the technical efficiency. This study stresses two basic points. On the one hand, it gives an idea about the state of the Tunisian manufacturing industry of which it is essential to define the relevant guidance of such economic policy. On the other hand, it presents the stochastic methods, which are able to integrate the multifactor productivity in the cost model, and then the measurement of technical efficiency and the capacity utilization. Our results show that, despite the technological progress, there is a decline in productivity growth over the 1961/2014 period due to the growing inefficiency. The under-use of production capacity in the different sectors of the Tunisian manufacturing industry was considered a consequence of the excess capacity and the lack of efficiency attributed mainly to the lack of competition, which enables farms to operate below their frontier if they are protected on the market.
},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - An Empirical Analysis of Capacity Utilization and Total Factor Productivity to Inference on Technical Efficiency Level of Tunisian Manufacturing Industry
AU  - Maha Kalai
Y1  - 2023/12/26
PY  - 2023
N1  - https://doi.org/10.11648/j.jwer.20231202.14
DO  - 10.11648/j.jwer.20231202.14
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 81
EP  - 98
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20231202.14
AB  - In this article, we tried to examine the various definitions stated in the literature about the performance and measurement of the capacity utilization rate, the total factor productivity and the technical efficiency. This study stresses two basic points. On the one hand, it gives an idea about the state of the Tunisian manufacturing industry of which it is essential to define the relevant guidance of such economic policy. On the other hand, it presents the stochastic methods, which are able to integrate the multifactor productivity in the cost model, and then the measurement of technical efficiency and the capacity utilization. Our results show that, despite the technological progress, there is a decline in productivity growth over the 1961/2014 period due to the growing inefficiency. The under-use of production capacity in the different sectors of the Tunisian manufacturing industry was considered a consequence of the excess capacity and the lack of efficiency attributed mainly to the lack of competition, which enables farms to operate below their frontier if they are protected on the market.

VL  - 12
IS  - 2
ER  -

Copy | Download