Title: Reduction of Excess Capacity with Response of Capital Intensity Show Chinese title

Title: 产能过剩与资本密集度响应的减少

Abstract: Purpose: The objective of this research was to show the response of the potential reduction of excess capacity in terms of capital intensity to the growth rate of labor productivity in the manufacturing industrial sector. Design/Methodology/Approach: The research was carried out in 2019 in 55 groups of Indian manufacturing industry within six major Indian industrial states. Mainly, the research used the modified VES (Variable Elasticity Substitution) estimation model. The research focused on the value of the additional substitution parameter of capital intensity (mu > 0). Findings: Almost all selected industry groups with in six states need capital-intensive production. The results found additional parameter of capital intensity (mu) is greater than zero for all industry groups. It means that a higher product per man can be obtained by increasing the capital per worker. Practical Implications: Research shows that an increasingly need for capital investment in need for higher labor productivity is likely to induce the manufacturing unit to use more capacity in existence. It reveals that investors in these selected six states can increase their capital investment. Originality/Value: The analysis of the result allowed to determine the fact that capital intensity is an essential variable for reduction of excess capacity which cannot be ignored in explaining productivity. Show Chinese abstract

Abstract: 目的：本研究的目的是展示在制造业工业部门中，资本密集度对劳动生产率增长率的响应。 设计/方法/途径：本研究于2019年在印度六个主要工业州内的55个印度制造业群体中进行。 主要地，本研究使用了改进的VES（可变弹性替代）估计模型。 本研究关注资本密集度的额外替代参数（mu > 0）的值。 发现：六个州内几乎所有选定的行业群体都需要资本密集型生产。 结果发现，所有行业群体的资本密集度的额外参数（mu）都大于零。 这意味着通过增加每个工人的资本，可以获得更高的人均产量。 实际意义： 研究显示，对更高劳动生产率的需求可能促使制造单位更多地利用现有产能。 这表明这些选定的六个州的投资者可以增加他们的资本投资。 原创性/价值：结果的分析使得确定资本密集度是减少过剩产能的一个关键变量，这在解释生产率时不能被忽视。