ANALYSIS OF THE DEMAND FOR PRODUCTION RESOURCES IN THE AGRICULTURAL SECTOR IN IRAQ FOR THE PERIOD (1990-2022) USING THE TRANSCENDENTAL COST FUNCTION
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The research aims to study the nature of demand for production resources and determine the possibility of substituting production factors using other cost elasticities, such as estimating Morishima and Allen-Uzawa substitution elasticities through the transcendental cost function. The SURE model was used to estimate costs and provide accurate elasticity estimates for analyzing the demand behavior of production elements. The transcendental cost function was applied with the help of the (Eviews12) program. The results showed that the relationship between agricultural inputs is variable; for instance, the relationship between labor and agricultural mechanization was complementary, while the relationship between fertilizers and agricultural area was substitution. The results also indicated that substitution elasticities between inputs vary, as the elasticity of substitution between fertilizers and agricultural mechanization reached 0.6, suggesting the possibility of partial substitution. The study recommended enhancing substitution relationships between production elements. Given the flexibility of substitution among production elements, it is important to strengthen coordination between different sectors such as fertilizers, mechanization, and labor, as increasing investment in one of these elements may necessitate increasing other resources to achieve optimal production.
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Copyright (c) 2025 Lina Amer Fares Alani, Yusra Tarik Baker (Author)
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