On Estimation of the Normalized CES Production Function for Turkey

Selen Başer Andıç

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: This paper estimates a normalized constant elasticity of substitution production function for Turkey using the data between 1991-2014. Employing a system approach, the elasticity of substitution, direction of the technical change and total factor productivity are determined. The results indicate that elasticity of substitution is around 0.8 and significantly below unity in Turkey. The dynamics of the technical progresses of inputs signal a slowing productivity growth in labour, and a falling productivity in capital. These findings imply that in Turkey, the average growth of the total factor productivity is very low, if not zero, and labour-augmenting technical progress is slightly dominant over time.

Keywords: CES function; Elasticity of substitution; Technical change; Factor shares; Turkey (search for similar items in EconPapers)
JEL-codes: C22 E23 E25 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-eff and nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN ... g+Paperss/2016/16-13 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1613

Access Statistics for this paper

More papers in Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey Contact information at EDIRC.
Bibliographic data for series maintained by Sermet Pekin () and Ilker Cakar () and ().