Production Behaviors of Manufacturing Industries in Bangladesh

Whenever the production process increases slowly the usual production function i.e., having multiplicative error term do not behave well for forecasting purpose. In this situation, Cobb-Douglas type production function with additive errors may be applicable. In this regard, the estimation procedure is to be complicated. Hence, non-linear estimation procedures are applicable. However, both Cobb-Douglas type function with multiplicative and additive errors are to be estimated here. Different model selection criteria show that Cobb-Douglas type production function with additive errors is more suitable for forecasting the industrial production in Bangladesh.

Autorentext

Currently, Md. Moyazzem Hossain working as an Assistant Professor in the department of Statistics at Jahangirnagar University, Bangladesh. He has published more than 45 research articles in national and international journals. In addition, he is now serving as an editorial board member of four international journals.