Estimating production function for small and medium size industries in Jordan

Abstract EN

This study attempted to estimate the production function for small and medium size industries in Jordan that employ 20 or less workers.

Therefore, three models of production function which are, constrained and unconstrained Cobb-Douglass, and the constant elasticity of substitution applied to the data.

The hypothesis of constant return to scale and the hypothesis of constant elasticity of substitution are tested.

The study conclude that there is an increasing return to scale for small and medium size industries in Jordan.

Furthermore, constant elasticity of subsitiution between labor and capital hupothesis is rejected.