Author/Authors :
Annabia, Majid Department of Pharmacoeconomics and Pharmaceutical administration - Faculty of Pharmacy - Tehran University of Medical Sciences, Tehran, Iran , Kebriaeezadeh, Abbas Head of the Center of Economic Research and Drug Management - Faculty of Pharmacy - Tehran University of Medical Sciences, Tehran, Iran , Mohammadi, Timor Department of Theoretical Economics - Faculty of Economics - Allameh Tabataba´i University, Tehran, Iran , Marashi Shoshtari, Nasrolah Department of Industrial Engineering and Management System - Faculty of Industrial Engineering - Amirkabir University of Technology,Tehran,Iran , Abedin Dorkoosh, Farid Department of Pharmacoeconomics and Pharmaceutical Administration - Faculty of Pharmacy - Tehran University of Medical Sciences, Tehran, Iran , Pourreza, Abolghasem Department of Health Management and Economics - School of Public Health - Tehran University of Medical Sciences, Tehran, Iran , Heydari, Hassan Department of Economics - Faculty of Economics and Management - Tarbiat Modares University, Tehran, Iran
Abstract :
The aim of this study was to measure the potential of production and the capacity used in
the pharmaceutical industry. Capacity use is the actual production rate to the potential output,
which reflects the gap between actual production and production capacity.
Through econometric methods, translog cost function in the short run along with functions
of share cost of production factors is estimated through seemingly unrelated repeated regression
(SURE) as a multivariate regression analysis provided by zeller.
During the study the capacity used is decreasing. The capacity used, which calculated by
weighted average, also decreased and the amount during the study period is much less than the
simple average of the industry. Average capacity utilization in the industry over five years of
study is equal to 57% while the average capacity used calculated by the weighted of industry
average is 37%. To enhance the economic potential requires a proper use of resources, creation
of favorable economic structure and productivity of the industry. Due to the large amount of
unused capacity in the pharmaceutical industry there is no need to invest anymore unless in
new grounds and it is obvious that more investment will change using capacity.
Keywords :
Stock exchange , Productivity , Pharmaceutical companies , Economic potential , Utilized capacity
