Capacity Utilization, Productivity and Production Function: Results on Public Sector Unit (BVFCL, Namrup)

This paper analyses the relation between capacity utilization and productivity of BVFCL, Namrup for the period 2003–2013. The results point out that both in short run and long run the factors are related to each other. However, it is capacity utilization that granger cause productivity. Specification and estimation of CD (Cobb-Douglas), CES (Constant Elasticity of Substitution) and VES (Variable Elasticity of Substitution) production function indicates that BVFCL follows CD production function.