This paper measures Örm level ine¢ ciencies in input use among manufacturing Örms in Ghana by explicitly estimating their production function. I Önd that the fraction of undercapitalized Örms is 40%, but overall, Örms use 83% more capital and 40% less labor than would be optimal. Underutilization of labor is especially prevalent among Örms with a unionized workforce. Firms with formal loans and Örms with more human capital are closer to their e¢ cient capital stock. The Öndings suggest large potential gains in value added from adjusting input use in the optimal direction.