Document Type : Research Paper

Authors

• Mansour Zerra Nezhad ¹
• Mehran Larki Bakhtiari Nezhad ²

¹ Assistant Professor, Shahid Chamran University, Ahvaz, Iran

² Senior researches Planning and Economic System Analysis

Abstract

Due to the importance of production of pipes in oil and gas industries, the estimation of oil and gas pipe production function is of great interest. To this end, Ahvaz pipe mill, the largest pipe mill in Iran, has been chosen as a case study and its production function during 1979-2003 has been estimated. This estimation is based on time-series techniques, using unit root tests, cointegration and error correction models. The results suggest that Cobb-Douglas production function is more compatible with theory of production function & the data than alternative specifications. The imperical findings show that the error correction term is 0.96, labour elastisity and capital elastistiy are 0.58 and 0.53, respectively. The wald test result indicate that there is increasing return to scale.

Keywords

• Pipe Production Function
• Pipe Mill
• Cointegration
• Engle-Granger
• Johansen
• Khuzestan