Estimation of the Production Function of Diyala State Company for Electrical Industries for the Period 2010-2019

Abstract

To research the production function of the Diyala General Company for Electrical Industries as part of the industrial companies operating in the public sector is of clear importance within the framework of developing the field of the electrical industry, as the study of the production function has effects in improving the management of the company’s economics, which increases the contribution of this sector to the inputs of other economic sectors in a way that enhances the comprehensive development process. This study aims to estimate the production function of the aforementioned company and analyze it in a standard way to show the contribution and impact of each of its elements on changes in the quantity of production, and then shed light on the production structure and technology. In this study, the production function of Diyala State Company for Electrical Industries was estimated and analyzed for the period 2010-2019, as the method of least squares (OLS) was applied to reach the results of the analysis using the Eviews 10 program. In a functional relationship that was characterized by statistical significance in its estimated transactions and the estimated model in its general form, the model was analyzed economically by indicating the existence of a functional relationship between the quantity of production on the one hand and capital, labor and production requirements on the other hand. The company's use of labor-intensive technology. While the relationship of fixed capital formation and production requirements with the production quantity had a marginal effect, it justified not modernizing (mechanization) and adopting the labor component more than others.