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Kiel Institute Focus

2013 | 2012 | 2011 | 2010 | 20092008

 

No. 21    April 16, 2013
by Nils Jannsen and Julia Richter

 

Foreign Capacity Utilization: An Indicator for the Exports of German Capital Goods

Capacity utilization is an important determinant of investment activity in the business sector. In general, an increase in capacity utilization leads to an increase in investment activity and thus to an increase in demand for capital goods. Likewise, an increase in foreign capacity utilization should lead to an increase in demand for domestic capital goods.

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Kiel Institute Focus

The Kiel Institute Focus Series presents papers on current economic policy topics. Their authors are solely responsible for their content and their views or any policy recommendations they may make do not necessarily represent the views or recommendations of the Institute.

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