The Relationship Between Production Inputs, Factor Substitution, and Economic Growth

Factors of production and elasticity substitution play an essential role in economic growth accounting. Although functions with constant between factors are more commonly utilized accounting, studies based on variable also conducted. Since provide flexibility parameters, they advantageous than other functions. Besides, most focus the capital labor. Studies sub-components relatively few. In this study, stock is analyzed by dividing it into two subcomponents as public private stock. The empirical results, general, show that less unity. context, can be expressed complementary inputs final goods services. As a result, expenditures infrastructure boost raising efficiency investments.