Sources of output growth in Bangladesh food processing industries: A decomposition analysis

In this paper the performance of firms in the Bangladesh food processing in dustries is evaluated in terms of total factor productivity (TFP) growth wh ich is decomposed into the changes in productive capacity realization (PCR) and technical progress (TP). Empirical results show that there is some tec hnological progress in a number of food processing industries. However, the overall poor performance of this sector is due to the low rate of capacity realization of several individual firms, even after the implementation of economic reforms. The results also indicate that output growth in recent ye ars was mainly due to input growth.