DocumentCode :
3159023
Title :
Capacity utilization, investment and consumer demand: Evidence from 28 manufacturing industries using PVAR
Author :
Liu, Lin
Author_Institution :
China Jiliang Univ., Hangzhou, China
fYear :
2011
fDate :
8-10 Aug. 2011
Firstpage :
5475
Lastpage :
5478
Abstract :
The dynamic relationship among investment, capacity utilization and consumer demand is discussed in this paper, using data from 28 Chinese manufacturing industries combined with vector auto regression model. Based on the generalized method of moments (GMM) estimation to get parameter values of panel VAR model, We find that response of investment to capacity utilization is positive by using impulse response functions of these two variables. After adding factor of consumer demand, impulse response functions of three variables show that the shock of consumer demand will increase capacity utilization and thus the investment which means strong consumer demand is the basis of large-scale investment.
Keywords :
autoregressive processes; estimation theory; investment; manufacturing industries; Chinese manufacturing industries; capacity utilization; consumer demand; dynamic relationship; generalized method of moments estimation; impulse response function; investment; panel vector autoregression model; Data models; Economics; Electric shock; Estimation; Investments; Manufacturing industries; Mathematical model; Capacity Utilization; GMM; Investment; Panel VAR;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on
Conference_Location :
Deng Leng
Print_ISBN :
978-1-4577-0535-9
Type :
conf
DOI :
10.1109/AIMSEC.2011.6009812
Filename :
6009812
Link To Document :
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