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

Prendergast, Renée

doi:10.1080/00220389008422183

Cited by 14 publications

(11 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…MSMS firms have an important share in entrepreneurial functions and create major job opportunities (Akyüz, 2000). However, some supported the concept of increasing the scale of output and using advanced technology to reduce the cost of production in the developing countries (Prendergast, 1990).…”

Section: General Characteristics Of Small Firmsmentioning

confidence: 99%

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

Akyüz

Serіn

et al. 2006

Forest Policy and Economics

View full text Add to dashboard Cite

Section: General Characteristics Of Small Firmsmentioning

confidence: 99%

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

Akyüz

Serіn

et al. 2006

Forest Policy and Economics

View full text Add to dashboard Cite

“…If a firm can choose its monitoring intensity, it can also choose other aspects of its operation, such as the levels of technology and output. Prendergast (1990) shows that it is feasible for firms to choose technologies. He also shows that a firm's choice of technology is affected by its level of output: a higher level of output induces a firm to choose a technology with a higher fixed cost but a lower marginal cost of production.…”

Section: Introductionmentioning

confidence: 99%

Monitoring Intensity and Technology Choice in a Model of Unemployment

Zhou

2019

Eastern Econ J

View full text Add to dashboard Cite

The interaction among a firm's choices of output, technology, and monitoring intensity is studied in a general equilibrium model. Firms engage in oligopolistic competition and unemployment is a result of the existence of efficiency wages. The following results are derived analytically. First, an increase in the cost of exerting effort leads a firm to choose a more advanced technology and a lower level of monitoring intensity. Second, an increase in the discount rate does not change a firm's choices of technology and monitoring intensity. Third, an increase in the elasticity of substitution among goods leads a firm to choose higher levels of monitoring intensity and technology. In a model in which the level of monitoring is exogenously given, there is a negative relationship between the wage rate and the monitoring intensity. In this model with endogenously chosen monitoring intensity, the wage rate and the monitoring intensity can move either in the same direction or in opposite directions.

show abstract

“…However, marginal costs decreased sharply. Second, Prendergast (1990) discusses technology choices in three manufacturing industries: nuts and bolts, iron founding, and machine tools. He shows that there is a tradeoff between marginal costs and fixed costs of production in those industries.…”

Section: Profit Maximizationmentioning

confidence: 99%

Unemployment and Economic Integration for Developing Countries

Zhou

2014

SSRN Journal

View full text Add to dashboard Cite

While financial or trade integration between countries may increase the size of the market and helps the adoption of more advanced technologies, will it also increase the level of urban unemployment for a developing country? In this model, there is unemployment in the urban sector. Manufacturing firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Financial firms provide capital to manufacturing firms and they also engage in oligopolistic competition. We show that an increase in the wage rate in the manufacturing sector changes neither the level of technology nor the level of employment in the manufacturing sector. While financial or trade integration between developing countries leads manufacturing firms to adopt more advanced technologies, the level and rate of employment in the manufacturing sector will not deteriorate.

show abstract

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

Cited by 14 publications

References 8 publications

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

Monitoring Intensity and Technology Choice in a Model of Unemployment

Unemployment and Economic Integration for Developing Countries

Contact Info

Product

Resources

About