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

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.

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

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

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

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

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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