EconPapers    
Economics at your fingertips  
 

Is the Law of Diminishing Returns to Capital Operating in the Indian Industry? Evidence from Cross-section Data

Mulakala Upender and Mothkuri Aruna ()

The IUP Journal of Managerial Economics, 2005, vol. III, issue 1, 46-52

Abstract: This paper examines the empirical validity of law of diminishing returns to capital across 127 Indian industries (factory sector) for the year 1999-2000 by fitting a quadratic production function. The empirical evidence on the basis of sign, size and statistical significance of the regression coefficients of the capital and square of capital shows that the marginal product of capital is eventually diminishing, confirming that the law of diminishing returns to capital, all else being equal, is operating across the Indian industries

Date: 2005
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: https://EconPapers.repec.org/RePEc:icf:icfjme:v:03:y:2005:i:1:p:46-52

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 2021-05-11
Handle: RePEc:icf:icfjme:v:03:y:2005:i:1:p:46-52