Scale of production and choice of technique in the engineering industries in developing countries

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

This article examines the relationship between scale of production, optimal choice of technique and costs for three engineering industries: nuts and bolts, iron founding and machine tools. In all three industries costs of production fell as the scale of output increased. This was associated with switches of technique and the spread of fixed costs over a larger number of units. The capital-output ratio fell and labour productivity increased with increases in scale while, in most cases, the capital-labour ratio increased. The implications of these findings are briefly discussed.
Original languageEnglish
Pages (from-to)72-88
Number of pages17
JournalJournal of Development Studies
Volume27(1)
Publication statusPublished - Oct 1990

Fingerprint Dive into the research topics of 'Scale of production and choice of technique in the engineering industries in developing countries'. Together they form a unique fingerprint.

  • Cite this