Journal of Geology and Mining Research
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Article Number - A1B1E831254


Vol.1(1), pp. 19-024 , March 2009

ISSN: 2006-9766



Full Length Research Paper

Estimation of production function for mines in Iran


R. Sh. Shahabi1*, R. Kakaie2, R. Ramazani3 and L. Agheli4




 

1Faculty of Mining Engineering and Geophysics, Shahrood University of Technology, Shahrood, Iran.

2Faculty of Mining Engineering and Geophysics, Shahrood University of Technology, Iran.

3Faculty of industrial engineering, AmirKabir University of Technology, Tehran, Iran.

4Economic Research Center, Tarbiat Modaress University, Tehran, Iran.


Email: reza.shahabi@gmail.com






 Accepted: 12 March 2009  Published: 31 March 2009

Copyright © 2009 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


 

Mines as an important sector of Iran's economy have a principal role on supply chain of the most of the economical sectors. The determination of relationship between major production function (PF) factors in mines is one of the necessary activities for efficient management of mine sector. In this paper, the best mine production functions were estimated using information of selected minerals. For this purpose, by defining efficient criteria the active mines of coal, ferrous, lead and zinc, copper, barite, kaolin and decorative stones were chosen as samples for analysis. All required information for these minerals was gathered through 1996 - 2005. Then, different forms of production functions were evaluated by employing of econometric methods and finally 4 models were chosen, these models were evaluated by using the information of all the operating mines in Iran and outcomes are compared with actual data. The results showed that Cobb-Douglass model is the most compatible production function for Iran's mines with regards to the parameters of capital, labor number, research and development costs and investment efficiency ratio. The model showed that research costs and investments on machinery and development have positive effects on mines' value added earning. In addition, it was shown that time has no positive effects on technological growth in Iran's mines.

 

Key words: Mine, production function, Cobb-Douglas, CES.


APA (2009). Estimation of production function for mines in Iran. Journal of Geology and Mining Research, 1(1), 19-024.
Chicago R. Sh. Shahabi, R. Kakaie, R. Ramazani and L. Agheli. "Estimation of production function for mines in Iran." Journal of Geology and Mining Research 1, no. 1 (2009): 19-024.
MLA R. Sh. Shahabi, et al. "Estimation of production function for mines in Iran." Journal of Geology and Mining Research 1.1 (2009): 19-024.
   
DOI
URL http://academicjournals.org/journal/JGMR/article-abstract/A1B1E831254

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