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The Economies Scale of Agricultural Product Processing Companies Listed on Stock Exchange in Hochiminh City and Hanoi, Vietnam

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  • , Le Thanh Tung

Abstract

This study applied the Cobb-Douglas production function to identify economics efficiency of 18 agricultural product processing companies listed on the Stock exchange in Ho Chi Minh City (HOSE) and Hanoi (HNX) in such sectors as fisheries, rubber and sugar in the period 2009- 2013.The method employed FEM and REM models using panel data. The results showed that performance of all and each sector in this study has increasing returns to scale. In particular, firms in the sectors of fisheries and rubber primarily relied on raising capital to increase theiroutput value, while those in the sugar sectormainly increase labors toimprove their output value. Finally, the paper also provides some policy implications to improve the efficiency of capital and labor in the agricultural product processing companies.

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  • , Le Thanh Tung, 2015. "The Economies Scale of Agricultural Product Processing Companies Listed on Stock Exchange in Hochiminh City and Hanoi, Vietnam," OSF Preprints yh4kw, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:yh4kw
    DOI: 10.31219/osf.io/yh4kw
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    1. Dana Hájková & Jaromír Hurník, 2007. "Cobb-Douglas Production Function: The Case of a Converging Economy," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(9-10), pages 465-476, October.
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