On Estimation of the Normalized CES Production Function for Turkey
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Title: |
On Estimation of the Normalized CES Production Function for Turkey |
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Number: |
16/13 |
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Author(s): |
Selen Başer Andıç | |
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Language: |
English | |
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Date: |
June 2016 |
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Abstract: |
This paper estimates a normalized constant elasticity of substitution production function for Turkey using the data between 1991-2014. Employing a system approach, the elasticity of substitution, direction of the technical change and total factor productivity are determined. The results indicate that elasticity of substitution is around 0.8 and significantly below unity in Turkey. The dynamics of the technical progresses of inputs signal a slowing productivity growth in labour, and a falling productivity in capital. These findings imply that in Turkey, the average growth of the total factor productivity is very low, if not zero, and labour-augmenting technical progress is slightly dominant over time. |
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Keywords: |
CES function, Elasticity of substitution, Technical change, Factor shares, Turkey |
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JEL Codes: |
C22; E23; E25 |
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