if any, is mainly of the
unintended nature, capacity expansions do not move
in line with past utilization rates and it also indicates
that abolition of restrictions on licensing due to trade
liberalization do not help industry to expand capacity.
On the other hand, low correlation between capacity
www.ce.vizja.pl Vizja Press&IT
Economic Efficiency in Indian Rubber Industry 91
expansion (CE) and lagged output (QL
) indicates that
unintended excess capacity is varying from year to
year in an unsystematic matter.