A Model for Technical and Economic Efficiency of Cement Production in Nigeria in the presence of Multicollinearity
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Date
2011-10-30
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Brown Walker Press
Abstract
The Cobb-Douglas model is widely used in research for forecast and organisational decision-making.
In this study Technical and Economic Efficiency of cement production in Nigeria is determined by considering substitutability of factors of production; Labour, Capital and Material. Millions of Dollars has been invested on Research and Development to ensure massive cement production in Nigeria. However, Cobb-Douglas Production function is known to be associated with the problem of Multicollinearity, this is known as linear or near linear relationship among variables. The result is reliable and can be used for decision-making by cement Production Company in Nigeria.