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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Foreign Exchange and Efficiency in Tanzanian Industry: A Short-Run Industry Production Function Approach
Authors:Mbelle, Ammon
Sterner, T.ISNI
Year:1991
Periodical:Eastern Africa Economic Review
Volume:7
Issue:1
Pages:31-38
Language:English
Geographic term:Tanzania
Subjects:foreign exchange
textile industry
Economics and Trade
Development and Technology
international relations
Abstract:Foreign exchange scarcity is one of the most serious problems facing industry in Tanzania. In this study, the authors use a short-run industry production function to see how much efficiency could be improved with existing plant structure through an economically optimal allocation of scarce foreign exchange. The data consist of three cross sections - 1976, 1978 and 1984 - for the textile industry. The variables included are production, capacity labour, energy and imported materials used for each individual plant in the industry. The results indicate that considerable reductions in cost could be realized if foreign currency were allocated according to efficiency criteria. Bibliogr.