A Post-Liberalization Period Analysis of Industry Specific Economic Factors Affecting Capacity Utilization in Indian Aluminium Industry

Abstract

The present study attempts to analyze the nature of quantitative relationship between different industrial characteristics and capacity utilization using industry- level and company-wise time series data in the context of Indian Aluminium Industry during 1991, 92 to 2004, 05.Applying a liner multiple regression model with time variable, it is evident that capacity utilization is positively related to demand pressure, Capital Intensity and market concentration variables and time has a very smaller (Significantly different from zero ) effect on capacity utilization. But scale of operation variable represented by market share shows confusing and statistically insignificant result which is contrary to our hypothesis.

Key words: Aluminium, industry, liberalization, capacity utilization, India, factors.