Measurement of capital usage in Nigerian industries

The measurement of capital usage has engaged the attention of economists for a long time, because estimates of capital usage are used in investment decision-making of business firms and in estimating production functions and productivity. The paper discusses various methods that have been used for the measurement of capital usage. A model is formulated and fitted to cross-sectional data from Nigerian manufacturing industries. The estimate of capital usage compares favourably with estimates derived from other studies.