COBB-DOUGLAS PRODUCTION FUNCTION OF THE SERBIAN ECONOMY
DOI:
https://doi.org/10.56362/Rev22100007МKeywords:
Cobb-Douglas production function, Serbian economy, diminishing returns to scale, labour and capital inputs, educationAbstract
This article is dedicated to the study of the Serbian economic production function in the period from 2010 to 2021. The constructed Cobb-Douglas production function indicated a marked labor intensity and decreasing returns to scale and inefficiency of the domestic economy. While capital showed a small, but statistically significant contribution to the output, the more abundant labor factor does not significantly affect the Gross value-added trend. Serbia should invest intensively in its human capital education and training, and advanced technologies as the fundamental prerequisite for society’s development and further progress.
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