Estimates of Energy and Non-Energy Elasticities in Selected Asian Manufacturing Sectors
Energy Economics, pp. 115-128, April 1987
Posted: 18 Feb 2010
Date Written: April 1987
Abstract
This paper presents the results of a study of the demand elasticities for energy and non-energy inputs in the food processing and textile industries in Bangladesh, the Philippines and Thailand. Estimates of substitution elasticities in production were derived by fitting data to a translog cost function for the period 1970-1980 for Bangladesh, 1970-1978 for the Philippines, and 1974-1977 for Thailand. The results varied according to the industries studied and across countries. They were compared with those of several developing and industrialized countries, and substitutability among inputs was found to be greater in the manufacturing sector of the developing countries studies than in those of industrialized countries. The generally high elasticities between labour and energy have implications for relative input pricing and use in developing countries.
Keywords: Energy, Elasticities, Asia, Manufacturing sector, Demand, Food processing, Labour
JEL Classification: Q41, Q47, O14, N65
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