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Productivity Growth and Input Demand: The Effect of Learning by Doing in a Gold Mining Firm in a Developing Economy

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  • John Baffoe-Bonnie

Abstract

This paper analyzes the effect of learning by doing (LBD) on the firm’s productivity growth and its input demand decisions. The results indicate that LBD is an important determinant of the firm’s productivity growth. The contribution of LBD to the firm’s productivity growth is about 5.6%. Another observation is that LBD has a decreasing effect on the firm’s cost of production – a finding which is consistent with the results of many studies. Also, an increase in LBD measured by cumulative production increases the firm’s demand for capital, and decreases the firm’s demand for labor. Lastly, LBD has a significant effect on the firm’s elasticity of scale. A fundamental message derived from the study is the confirmation that the firms should invest in more large capital equipment, embark on new processing techniques, and create an environment that is conducive to on-the-job learning.

Suggested Citation

  • John Baffoe-Bonnie, 2016. "Productivity Growth and Input Demand: The Effect of Learning by Doing in a Gold Mining Firm in a Developing Economy," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 550-570, October.
    • Handle: RePEc:taf:intecj:v:30:y:2016:i:4:p:550-570
    DOI: 10.1080/10168737.2016.1204341
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    Cited by:

    1. Elena Shakina & Angel Barajas, 2014. "The Changing Role Of Intellectual Resources During The Economic Crisis Of 2008-2009," HSE Working papers WP BRP 17/MAN/2014, National Research University Higher School of Economics.
    2. Sansi Yang & C. Richard Shumway, 2020. "Knowledge accumulation in US agriculture: research and learning by doing," Journal of Productivity Analysis, Springer, vol. 54(2), pages 87-105, December.

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