ISSN: (Online) 2321 -4155
ISSN: (Print) 2320 -7000

JOURNAL OF INDIAN RESEARCH (ISSN No. : 2320 -7000)
VOLUME : 1, ISSUE : 4,October-December, 2013
 
AN ESTIMATION OF PRODUCTION FUNCTION IN THE AGGREGATE MANUFACTURING SECTOR OF SOUTHERN STATES OF INDIA IN THE POST-REFORM PERIOD
Dr. M. Manonmani
 
ABSTRACT
The production function is purely a technical relation, which connects factor inputs and outputs. It describes the laws of proportion, i.e., the transformation of factor inputs into outputs at any particular time period. The production function represents the technology of a firm or an industry, or the economy as a whole, and it includes all the technically efficient methods of production. I n t h i s p a p e r, a n e f f o r t i s m a d e t o e s t i m a t e production function in the aggregate manufacturing sector of southern states for the reference period between 1991- 92 and 2010-11. The results assessed the importance of skilled labour component in the states such as Karnataka, Andhra Pradesh and Kerala. With regard to the type of technology adopted by the states, it could be observed that the manufacturing sector of Andhra Pradesh, Karnataka and Kerala were adopting labour intensive technology since the co-efficients of wage (β2) was greater than capital co-efficient (β1). The manufacturing sector of Tamil Nadu was known for capital intensive technology based on the co-efficients (β1>β2).
 
KEYWORD
Capital –labour ratio (K/L), co-efficient of labour (β), Marginal productivity of capital (MPK), Marginal productivity of labour (MPL),Marginal Rate of Substitution of labour for capital (MRTSLK ).
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