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Mohammed Noori Farhan [email protected]


Abstract

To research the production function of the Diyala State Company as part of the industrial companies operating in the public sector is of clear importance within the framework of developing the field of the electrical industry. Because the study of the production function has effects on improving the management of the company's economics, which increases the contribution of this sector to the inputs of other economic sectors in a way that enhances the development process overall. This study aims at estimating the production function of the aforementioned company and its standard analysis to show the contribution and impact of each of its elements on the changes in the value of production, and then shed light on the structure and technology of production. In this study, the production function of the Diyala State Company was estimated and analyzed for the period 2002-2021, as the OLS least squares method was applied to reach the results of the analysis using the Eviews12 program. The function was formulated and estimated and statistical and standard tests were conducted. A function characterized by statistical significance in its estimated coefficients and the estimated model in its general form. The model was analyzed economically by pointing out the existence of a functional relationship between the value of production on the one hand and capital, labor and production requirements on the other hand. for labor-intensive technology. While the relationship of fixed capital formation and production requirements to the value of production had a marginal effect, it was justified by not modernizing (mechanization) and adopting the labor component more than others.

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How to Cite
Farhan, M. N. (2022). Estimation of the production function of the Diyala State Company for the period 2002-2021. Tikrit Journal of Administrative and Economic Sciences, 18(60, 3), 806–818. https://doi.org/10.25130/tjaes.18.60.3.45
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Articles

References

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