Article
Trade Liberalization and Capacity Utilization: New Evidence from the Turkish Rubber Industry
Empirical Economics
(1998)
Abstract
This study empirically tests the hypothesis that trade liberalization increases capacity utilization. It calculates capacity utilization for the Turkish rubber industry by using a production theory framework. More specifically, plant-level capacity utilization levels are calculated using a Generalized Leontief cost function system. Capacity utilization levels were low but improved when the trade regime shifted from a restrictive to a more liberalized one. The size and location of plants were two significant factors which created capacity utilization differences within the industry. However, capacity utilization levels appeared to improve primarily because of trade liberalization.
Disciplines
Publication Date
1998
DOI
10.1007/BF01205994
Citation Information
Omer Gokcekus. "Trade Liberalization and Capacity Utilization: New Evidence from the Turkish Rubber Industry" Empirical Economics Vol. 23 Iss. 4 (1998) p. 561 - 571 Available at: http://works.bepress.com/omer_gokcekus/21/