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    Determinants of capacity utilization in the manufacturing sector
    (2004-03) Andres, Genevie Anne M.; Corpuz, Ameriza D.; Diokno, Benjamin
    Past studies indicate that the manufacturing sector, through time, had been underutilizing its capacity. Being a developing country, how is it possible that the country can afford not to use up all its available resources? It is a common belief that as one does its best to work at its full capacity, highest growth for the said industry will occur which eventually will lead to the country's economic growth. The paper aimed to find the determinants of capacity utilization in the manufacturing sector for possible answers as to why the said sector is not working at full capacity. Growth rates in manufacturing and its export-orientation were the main focus of the paper. With analysis done through panel regression, cross-sectional regression among the industries, the study concludes that growth rates affect capacity utilization positively, while export-orientation is not a significant factor for capacity utilization.