Production Function of the Mining Sector of Iran

Seyyed Ali Zeytoon Nejad Moosavian

Papers from arXiv.org

Abstract: The purpose of this study is to estimate the production function and examine the structure of production in the mining sector of Iran. Several studies have already been conducted in estimating production functions of various economic sectors; however, less attention has been paid to mining sectors. After examining the stationarity of variables using augmented Dickey-Fuller and Phillips-Perron tests, this study estimated the production function of the mining sector of Iran under different scenarios using the co-integration method and time-series data for 1976-2006. The unconstrained Cobb-Douglas production function in Tinbergen form provided better results in terms of theoretical foundations of economics, statistics, and econometrics. These results show that the structure of the mining sector of Iran is both capital-intensive and labour-intensive. Based on the findings of this study, the elasticity of production with respect to capital and labour have been 0.44 and 0.41, respectively. In addition, the coefficient of time variable, as an indicator of technological progress in the production process, is statistically significant representing a positive effect of technological changes on the output of Iran's mining sector.

Date: 2015-09, Revised 2015-09
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-eff and nep-ino
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://arxiv.org/pdf/1509.03703 Latest version (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:arx:papers:1509.03703

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().