Factor substitution, capacity utilization, and total factor productivity growth in the Peruvian manufacturing industry

"The purpose of this thesis is to analyse substitution possibilities among factors of production, capacity utilization, efficiency and total factor productivity growth in the Peruvian manufacturing industry. A brief statistical description of the manufacturing sector with respect to the development of output, factor usage and factor costs is followed by an analysis of substitution possibilities among four inputs: capital, labour, energy and materials for eight individual industries and for aggregate manufacturing. A translog cost function is used to estimate elasticities of substitution, own price elasticities, and test for technical change bias. The study indicates low substitution possibilities among factors of production. Technical change is capital and labour saving, but energy using."--Abstract.