Economics at your fingertips  

Elasticity of Substitution in the Indian IndustriesAn Empirical Investigation

Mulakala Upender and Mothkuri Aruna ()

The IUP Journal of Managerial Economics, 2004, vol. II, issue 4, 87-96

Abstract: This diminutive paper examines the degree of elasticity of substitution between labor and capital across 127 Indian industries [Factory Sector] for the year 1999-2000 by fitting a Constant Elasticity of Substitution Production Function developed by SMAC. The empirical results that emerged out of the cross section data demonstrate that the estimate of the elasticity of substitution between labor and capital across the Indian industries is significantly positive and unity, implying that a 1% increase in the cost of labor leads to substitution of the labor by capital by 1% in the Indian industries.

Date: 2004
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:

Access Statistics for this article

More articles in The IUP Journal of Managerial Economics from IUP Publications
Bibliographic data for series maintained by G R K Murty ().

Page updated 2023-03-27
Handle: RePEc:icf:icfjme:v:02:y:2004:i:4:p:87-96