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Estimation of Elasticities of Substitution for CESand YES Production Functions using Firm-levelData for Food-processing Industries in Pakistan

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  • GEORGEE. BAITESE

    (University of New England (Australia),)

  • SOHAILJ. MALIK

    (University of New England (Australia),)

Abstract

Analyses involving CES and VES production functions indicate that the constant-returns-to-scale CES model is an adequate representation of large-scale firms in the wheat-flour milling, rice husking, sugar refining and edible-oil processing industries in Pakistan. The hypothesis that these four food-processing industries have the same elasticities of substitution is not rejected. The pooled elasticity estimate for the food-processing industries is significantly different from zero, but not significantly different from one

Suggested Citation

  • Georgee. Baitese & Sohailj. Malik, 1988. "Estimation of Elasticities of Substitution for CESand YES Production Functions using Firm-levelData for Food-processing Industries in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(1), pages 59-71.
    • Handle: RePEc:pid:journl:v:27:y:1988:i:1:p:59-71
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    References listed on IDEAS

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    1. SHAHNAZ KAZI & ZAHlRA SALEEM KHAN & SEEMIN ANWAR KHAN, 1976. "Production Relationships in Pakistan's Manufacturing Industries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 15(4), pages 406-423.
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