Cobb-Douglas Research Articles

THE IMPACT OF FOREIGN AND NATIVE HUMAN CAPITAL ON TURKEY'S ECONOMIC GROWTH

In this study, the impact of human capital on Turkey's economic growth during 2003-2021 was investigated. For this purpose, the effects of native and foreign labor are examined separately within the framework of the Cobb-Douglas production function. The Johansen cointegration method was used for the analysis. The results of the estimation of the long-run model show that both foreign and native labors have a positive effect on economic growth, with the effect of native labors being larger than the effect of foreign labor. Both native and foreign labor play an essential role in creating the right background for Turkey's economic growth, so native and foreign labor should be used to increase productivity and production.

Energy Consumption and Economic Growth Nexus in Africa Countries: A Simultaneous Equations Model Approach

By adopting the Cobb-Douglas production function, this study examined the relationship between energy consumption, GDP, capital stock, and labour in 22 African countries from 1990 to 2018. To achieve this goal, the simultaneous equations were analysed after utilizing the Generalized Method of Moments (GMM)/Dynamic panel data estimation approaches. To determine the most fitted model between the fixed and random model, the study employed the Hausman model and its approved the random model as the best fitted model. According to the empirical results, energy consumption has a strong positive influence on GDP. This suggests that as the economy expands, so will energy consumption. The coefficients of labour and capital are significant, though labour implies negative effects. Also, GDP has a firm positive influence on energy consumption. This suggests that as the economy expands, so will energy consumption. Capital has a positive coefficient. This means that the countries are capital-intensive. The Labour coefficient is negative and statistically significant, indicating that capital is more energy intensive than labour-intensive generates the majority of GDP. This also implies that capital replaced labour in those countries. Further, the Dumitrescu Hurlin Panel Causality Tests revealed a bidirectional relationship between GDP and energy consumption. Thus, there is a bidirectional relationship between energy consumption and GDP across the entire continent. Energy policy formulations are likely to be the best long-term economic growth strategy in African countries.

Strategic resilience: Integrating scheduling, supply chain management, and advanced operations techniques in production risk analysis and technical efficiency of rice farming in flood-prone areas

Farmers face various risks such as production risks in the use of technology, pests, climate change and natural disasters. Farmers in disaster-prone areas have different responses depending on their behavior towards the risks posed. The main problem in this research is how farmers behave towards production risks due to flooding and the technical efficiency of rice farming in flood-prone areas. The aim of this research is to analyze farmers' behavior towards production risks due to flooding and the technical efficiency of rice farmers in flood-prone areas. The results of this research will provide important information for policy simulations that the government can implement towards farmers affected by natural disasters and for sustainable disaster mitigation strategies. The novelty of this research is that it combines two theories, namely risk behavior and agricultural technical efficiency in producing disaster mitigation strategies. The research location was determined purposefully in Pasuruan and Bojonegoro Regencies. The data in this research are primary and secondary data with the sample in this research being farmers. The sampling technique in this research is a multi-stage cluster sampling technique. The analysis method in this research uses Just Pope. and the Cobb-Douglas production function model with the Stochastic Production Frontier approach. The target of these research findings is a model of the types of behavior regarding the risks of farmers who are flood victims, as well as the level of technical efficiency of rice farming and the factors that influence it. The expected findings are policy recommendations regarding disaster mitigation from economic and agricultural risk aspects to create sustainable agriculture.

Coup d'état and economic growth in Turkey: Evidence from ARDL bounds testing procedure

In seven decades of the multiparty democracy period, Turkey has experienced four military coups. Even though the coups are thought to be a cold war phenomenon in the literature, they are still relevant. The failed coup attempt in 2016 reminds us that the military coup is still a critical issue in Turkish democracy and the economy. Interestingly, there is not an adequate amount of empirical research on the political economy of Turkey?s military coup experience. This study?s motivation is to provide empirical evidence for the economic growth-coup nexus literature with a core focus on Turkey, which is a remarkable case in many aspects. For this purpose, we extend an open-economy Cobb-Douglas production function with coups and use the autoregressive distributed lags (ARDL) method for the period 1950 to 2014. According to the study?s empirical findings, coup d??tats negatively affect real GDP in Turkey. Through structural reforms, Turkey should strengthen its democratic institutions to prevent such antidemocratic attempts.

Industrial artificial intelligence: stability of Cobb-Douglas production functions

Industrial artificial intelligence: stability of Cobb-Douglas production functions

The (Enduring) Role of the Cobb-douglas Production Function in the Standard Economics Paradigm

The (Enduring) Role of the Cobb-douglas Production Function in the Standard Economics Paradigm

An Integrated Analysis of Production, Marketing, and Value Addition in Rose and Gerbera Cultivation and Distribution

This comprehensive study offers an integrated investigation of various elements of rose and gerbera farming, marketing, and value-added operations. First, by evaluating the Cobb-Douglas production function’s coefficients and associated statistics, the production aspect is examined. which reveals strong relationships between inputs such as labour, seedlings, fertilisers, and output yield. Second, the marketing channels used in the distribution of rose and gerbera flowers are identified, with eight separate channels ranging from direct farmer-to-consumer transactions to multi-tiered networks comprising local and Dhaka wholesalers. Third, examine average marketing expenditures for performers or agents in each channel, including expenses for baskets, packing, transportation, storage, waste loss, commission, and other costs. Finally, the net value addition for each agent across various channels is derived by subtracting the selling price from the total marketing costs. The findings shed light on the intricacies of rose and gerbera cultivation and distribution, assisting stakeholders in optimising production methods, marketing approaches, and resource allocation to boost floriculture profits and efficiency in the floriculture industry.

The impact path of uncertain economic policy on the high-quality development of technology-based innovative enterprises

Abstract In recent years, macroeconomic policies have been characterized by significant uncertainty. This context of uncertainty has made it imperative to explore strategies that enterprises can adopt to pursue high-quality development. This paper specifically investigates the impact of economic policy uncertainty on science and technology enterprises. We categorize the productive activities of these enterprises into two types: technology-oriented and market-oriented. The paper further preprocesses the samples based on these categories. For analytical purposes, we employ the Cobb-Douglas production function to assess the level of enterprise development. A fixed-effects regression model is utilized, incorporating both control variables and mediating variables. Our baseline regression analysis reveals that the fintech coefficient for science and technology enterprises stands at 0.0721 without control variables and 0.0775 with them, demonstrating significance at the 1% level. These results suggest a positive correlation between economic policy uncertainty and the technology innovation activities of enterprises. Moreover, our findings indicate that economic uncertainty exerts a moderating effect on enterprise innovation. Specifically, the regression coefficients of economic uncertainty are −0.301, −4.687, and −3.154, while the industry characteristics regression coefficient is positive and significant at the 1% level. This pattern indicates that economic uncertainty significantly inhibits R&D investment in high-tech enterprises, adversely affecting their high-quality development.

Evaluation of technical efficiency traditional agriculture among smallholder maize farmers in East Java

The low productivity of maize in traditional agriculture has worsened the demand and supply of maize production. This gap indicates the important role of the small farmer sector in producing maize. However, this also indicates that there will be serious consequences for food security in Indonesia if maize farmers experience crop failure. Because of these conditions, this article will analyze the technical efficiency of traditional maize farming using a randomly selected sample of 70 farmers. This research uses a stochastic frontier model of technical efficiency analysis through a linearized Cobb-Douglas production function to determine the input production elasticity coefficient, technical efficiency, and the determining factors of technical efficiency. This study found that maize production responded positively to increasing the amount of seed, urea fertilizer, and NPK fertilizer. Efficiency analysis shows that traditional farming activities for smallholder maize farmers are classified as technically efficient with a Technical Efficiency value of 0.821, which means farmers can combine inputs to produce optimal output. The results of this research empirically prove that small-scale agriculture in maize farming activities has a better level of technical efficiency. The results of this research also highlight the role of farmer groups in improving technical efficiency through better agricultural extension services and other access.

Modelling contagious viral dynamics: a kinetic approach based on mutual utility.

The temporal evolution of a contagious viral disease is modelled as the dynamic progression of different classes of population with individuals interacting pairwise. This interaction follows a binary mechanism typical of kinetic theory, wherein agents aim to improve their condition with respect to a mutual utility target. To this end, we introduce kinetic equations of Boltzmann-type to describe the time evolution of the probability distributions of the multi-agent system. The interactions between agents are defined using principles from price theory, specifically employing Cobb-Douglas utility functions for binary exchange and the Edgeworth box to depict the common exchange area where utility increases for both agents. Several numerical experiments presented in the paper highlight the significance of this mechanism in driving the phenomenon toward endemicity.

Determining the optimal combination of production factors in pomegranate production farms in Diyala Province-Iraq: An analytical study for the season 2022

This study aimed to analyze the reality of pomegranate production in Diyala Governorate - Iraq for the season 2022 using the Cobb-Douglas function model, with the aim of achieving optimization in production through the Lagrange method. The production function it estimated for a sample of pomegranate orchards, the function included production, as a dependent factor and each of labor, capital, and area are independent factors. The optimal combination of productive factors that achieve the optimal production volume reached (6.985) tons / hectare in the short-run. The total cost function was also estimated, including the optimal production volume in the long- run, which reduces costs, reaching (30.8) tons / hectare, which is achieved by exploiting the optimal area of the orchard, which amounted to (32.667) hectare. While the long-run profit-maximizing production reached (21.077) tons/hectare, it was recommended to use the optimal combination of production factors that have been reached, which achieve optimal production that reduces costs, and then increase the areas planted with pomegranate trees in the long-run in the study region.

Efisiensi Faktor Produksi Pada Usahatani Padi Sawah Peserta dan Non-Peserta SL-PTT di Kecamatan Poelang Utara Kabupaten Bombana

Research to determine the influence of production factors and their efficiency on rice farming of SL-PTT participants and non-SL-PTT participants and non-SL-PTT participants in North Poleang Bombana District. Carried out in May – July 2011. Samples were determined using simple cluster sampling based on villages, as many as 2 villages (50% of the village population). Respondents from each village consisted of 15 participants and 15 non-participants of SL-PTT in a simple random manner (60 samples). Analysis using multiple non-linear regression using the Cobb-Douglas function and price efficiency analysis. Research results: (a) Production Factors; Land area, amount of use of seeds, fertilizer, labor and pesticides are closely related and simultaneously influence the production of lowland rice farming (R; l 0.889 and R2 = 0.790). (b) partially, except for the number of seeds, all production factors have a positive effect, but only fertilizer has a real effect, even at a confidence level of 85%. (c) Efficiency analysis shows that the use of fertilizer, labor and pesticides is not efficient so they can still be added to improve, while seeds are not efficient.

Akses listrik, air minum, dan sanitasi serta modal manusia di Indonesia

A country is said to be prosperous if it has the quality of human capital to carry out the production process. According to the Cobb-Douglas production function, the output (Q) of a country is explained by the input functions of artificial capital (K) and labor capital (L). Labor capital will be optimal if a country has quality human capital. Quality human capital will be achieved with good health and education levels. This study aims to analyze the influence of access to electricity, drinking water, and sanitation on Indonesia's quality of human capital in 2010–2019. The quality of human capital in this study is measured using the Human Development Index (HDI). The results of this study show that these three infrastructures have a significant positive effect on human capital. Thus, equal provision of these three accesses is a necessary and sufficient condition for improving the welfare of a country.

Social network learning efficiency in the principal–agent relationship

Under the bounded rationality assumption, a principal rarely provides an optimal contract to an agent. Learning from others is one way to improve such a contract. This paper studies the efficiency of social network learning (SNL) in the principal–agent framework. We first introduce the Cobb-Douglas production function into the classic Holmstrom and Milgrom (1987) model with a constant relative risk-averse agent and work out the theoretically optimal contract. Algorithms are then designed to model the SNL process based on profit gaps between contracts in a network of principals. Considering the uncertainty of the agent's labor output, we find that the principals can reach a consensus that tends to result in overcompensation compared to the optimal contract. Then, this study examines how network attributes and model parameters impact learning efficiency and posits several summative hypotheses. The simulation results validate these hypotheses, and we discuss the relevant economic implications of the observed changes in SNL efficiency.

Exploring the impact of public investment on income, energy consumption, and CO2 emissions in ASEAN: new insights from a panel cointegration approach.

Policy adjustments can help strike a balance between economic growth and environmental sustainability, which has increasingly been the heart to nations and regions throughout the World. This paper examines how public investment affects economic growth, energy consumption, and CO2 emissions in eight ASEAN countries: Cambodia, Myanmar, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. Extension of a Cobb-Douglas production function and application of panel cointegration techniques reveal bidirectional Granger causation between public investment and both private development and CO2 emissions from 1980 to 2019. Public investment Granger causes energy usage, the opposite does not hold statistically. More findings from pooled mean group estimations show a mean-reversion dynamic that corrects disequilibria by 14% yearly. State investment crowds in private sector growth, energy use, and carbon footprint. It also finds an inverted U-shaped relationship between public investment and energy consumption, and a U-shaped relationship between public investment and CO2 emissions, indicating complex regional interactions. It is suggested the implementation of public investment policies that enrich green infrastructure projects to foster growth while minimizing environmental impacts, and encourage a strategic approach to public investment for prioritizing environmental sustainability and thus, achieving Sustainable Development Goals 7 to 9 and 11 to 13 in this region.

A multiple criteria decision-making approach for water allocation of environmental flows considering the value trade-offs - A case study of Fen River in China

In the water-scarce basin, the allocation of environmental flows needs to achieve the equilibrium between ecological protection and economic development. One of the challenges is the lack of quantitative analysis of the value of water in the economy and ecosystem, which could not effectively support the decision-making. This paper proposed a new multi-criteria decision-making approach that considers the value trade-offs between the environmental flows and the economic water use of rivers. The value of environmental flows was assessed using the modified equivalent factor method combined with the hydraulic method, which considers the influences of the hydraulic characteristics of rivers on value assessment. The value of the economic water use was estimated using the modified Cobb-Douglas production function. The ideal point method was applied to obtain the optimal solution of the multi-criteria decision with the objective of maximum values of the economic water use and maximum values of environmental flows (or the value of multiple recommended environmental flows). This new method was applied to determine the optimal environmental flows in the Fen River, the second-largest tributary of the Yellow River of China. The results indicated that the reasonable environmental flows were 51.1 % or 40.4 % (considering the water shortage for development) of the natural runoff of the Fen River. This work could provide a valuable reference for determining the water allocation of environmental flows in the water shortage area of China.

Technical Efficiency of Smallholder Farmers in Tanzania: A Stochastic Frontier Approach

Aims: This study focused on determining the level of technical efficiency (TE) and its corresponding common factors across all crops grown by Tanzanian smallholder farmers. The motive of this study came from production theory and production efficiency and the research was strongly attracted by the ongoing subsistence nature of the agriculture sector in the country that doesn’t fully meet the desired productivity
 Methology: The study employed the cross-sectional National Sample Census of Agriculture 2019/2020 dataset while focusing on smallholder farmers operating in the long-rainy season by employing a single-step stochastic frontier model with an assumption of a Cobb-Douglas production function.
 Results: The results of production on frontier show that land size (Ha), seeds (Kg), and fertilizers (Kg) are the main requirement for smallholder farmers to produce their maximum output. Based on the efficiency equation, improved seeds, inorganic fertilizers, and access to extension services decrease farmers' technical inefficiency while household age and membership in a cooperative organization increase farmers' technical inefficiency. Further, the average level of technical efficiency among smallholder farmers in Tanzania is 56.7% which allows farmers to increase their output level up to 43.2% with the same level of inputs.
 Conclusion: As per the results, improved seeds and inorganic fertilizers are essential, however farmers organizations act as stumbling blocks. Thus, in this regard, Tanzanian farmers still have a room to improve and unlock their full potential, and so it is imperative for the government to take immediate measures to improve their technical efficiency such as introduction of more irrigation schemes, improved seed subsidies among others and farmers organizations should also be enhanced and streamlined to support farmers efficiency.

Efficiency of Production Factors in The Farming of Bird’s Eye Chili in Lamoahi Village, North Buton Regency

Chili is a commodity that often triggers inflation at certain times or periods due to sudden price increases. The reason is that the availability of chilies is not sufficient for market demand due to production inefficiencies. This research aims to determine the factors that influence cayenne pepper production and determine the efficiency of using production factors using the Cobb-Douglas production function. The results of the research show that seeds and labour have a significant effect on increasing cayenne pepper farming, while land area, fertilizers, and pesticides do not have a significant effect on production. The use of production factors has not yet reached the maximum level of efficiency. Production factors that are not yet efficient are land area and labour so their utilization needs to be increased. Meanwhile, inefficient production factors are seeds, fertilizers, and pesticides so their use does not need to be increased or reduced.

The Factor of Democracy and Prosperity and the Formation of the Nation State in the Example of Ukraine: Pre-War Picture

Ukraine is currently facing an armed onslaught, the likes of which no European country has struggled with since the Second World War, and it will probably take years to repair the country physically and the population mentally. However, to ensure that the future recovery process does not begin with a return to the past, a thorough analysis of the state of affairs before the intensification of the Russian onslaught in 2022, which began in 2014, is needed. The primary purpose of writing the article is to show, with real examples, the ineffectiveness of the pre-war state-forming function in Ukraine. This analysis indicates why most of the reforms were nullified and which steps must be taken to avoid these problems for the country’s correct economic, cultural, and political evolution. Using the Cobb-Douglas function, the relationship between intra-system factors of state formation and the standard of living of the country’s population is also established. It is proposed to shape the national concept of the modernisation of the public administration system and its new paradigm and to develop its state-forming model, which will be adequate with regard to Ukrainian realities (including the state post-war) and global trends. Thus, the relevance of the research topic stems from the need to provide practical recommendations for the future, post-war modernisation of the state-forming system in the context of the socio-political and economic development of the country, as well as civil society.

The impact of CO2 emissions and climate on economic growth and productivity: International evidence

AbstractIn this study, we apply a detailed country level data in the 1961–2015 period to investigate the relationship between weather variables, CO2, share of renewable energy sources, gross domestic product, and total factor productivity in a standard Cobb–Douglas production function by using an instrumental variable approach. Our findings suggest that economic growth has been positively affected by temperature and CO2 emissions, while climate vulnerability varies significantly between rich‐poor countries. Furthermore, the negative nexus between renewable sources and CO2 emissions demonstrates its importance for optimal environmental policies design while an inverted U‐shaped relationship for temperature and emissions.