IDEAS home Printed from https://ideas.repec.org/a/sae/manlab/v35y2010i4p419-427.html
   My bibliography  Save this article

Elasticity of Substitution and Returns to Scale in Manufacturing Sector of Andhra Pradesh: An Empirical Exercise

Author

Listed:
  • B. Narayana

Abstract

In this paper, the author has attempted to study the output elasticity, nature of returns to scale and find out whether the elasticity of substitution between two inputs is different from unity or not in the manufacturing sector of Andhra Pradesh State during 1985-86 to 2005-06 by using unrestricted Cobb-Douglas, restricted log-linear and CES production functions. Major findings of the study indicate that output elasticity with respect to capital is greater than unity and returns to scale are increasing reveals that the manufacturing sector of Andhra Pradesh State is in the phase of increasing returns to scale. Further, the elasticity of output per labour with respect to capital per labour is also more than unity showing that the accumulation of capital per labour is more productive in the manufacturing sector of the State. The elasticity of substitution is significantly different from unity in the manufacturing sector which is constant elasticity of substitution represents that the production function follows constant elasticity of substitution (CES) in the manufacturing sector of State.

Suggested Citation

  • B. Narayana, 2010. "Elasticity of Substitution and Returns to Scale in Manufacturing Sector of Andhra Pradesh: An Empirical Exercise," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 35(4), pages 419-427, November.
    • Handle: RePEc:sae:manlab:v:35:y:2010:i:4:p:419-427
    DOI: 10.1177/0258042X1003500402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0258042X1003500402
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0258042X1003500402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:manlab:v:35:y:2010:i:4:p:419-427. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.xlri.ac.in/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.