The Effect of the Labor and Capital Components on the Production of the Agricultural Sector in Jordan Using the Cobb-Douglas Production Function

Abstract

The goal of mixing the four production elements: land, capital, labor, and organization is to achieve the most significant production at the lowest cost [1]; it can be said that work and capital are among the essential elements in the production process. Therefore, combining these two elements is one of the most critical decisions that determine productivity, especially in the Cobb-Douglas function; the agricultural sector is one of the most productive sectors in each country. The percentage of its participation in the local product varies from country to country. Still, the strategic importance in this sector is due to the verified food security. The agricultural sector in Jordan is less involved in local production, but it is the sector that is witnessing growth in all stages of the study; although this sector is suffering from marginalization, it still produces. The study focused on the intensity of the production elements and the yield stage in increasing or decrease reliability. The researchers reached some results: the agricultural sector in Jordan suffers from sluggish employment and persuasive unemployment, and the agricultural sector in Jordan is in decline. Therefore, they recommended restructuring workers in the agricultural sector and taking careful employment studies.