Journal ID : AMA-27-11-2023-12744
[This article belongs to Volume - 54, Issue - 12]
Total View : 388

Title : Empirical Study on the Factors of Agriculture Production Function in Algeria

Abstract :

Identifying key factors of the production function in agriculture allows better management of resources, promotes growth, and contributes to the development of effective economic policies. Thus, the objective of the study is to identify the key elements of the production function in agriculture, focusing on Algeria between 2000 and 2022. In order to achieve that, the Cobb-Douglass functional form is used. Also, the assessment of factor elasticities is carried out using multiple regression models. The study shows that agricultural production in Algeria depends on several factors. The multiple regression's final results indicate that the factors relating to the following account for 76% of the total agricultural production: employment, number of machines, agricultural budget, imports, foreign direct investment and renewable energy consumption. The variables used in the final model are significant at the 1% and 5% thresholds. When analysing the elasticities of selected factors, the study found increasing returns of scale during the analysis period.

Full article