ABSTRACT

This chapter presents a description of the methods of data analysis, sampling techniques applied in data collection and characteristics of the sample of manufacturing firms. The value added at world prices is calculated directly from the volume of production. It is based on the potential revenue earnings from the sale of all of a firm's production in the export market, or alternatively the total cost of importing all of the firm's output. In this case, the price of imports was more difficult to obtain and therefore export prices were used. The domestic resource cost (DRC) represents the domestic cost, measured in domestic currency, of earning or saving a dollar's worth of foreign exchange by producing at home. The DRC is particularly attractive for evaluating efficiency of manufacturing activities in countries where considerable market imperfections are rife and foreign exchange supply bottlenecks exist.