Measuring and Analysis of Productivity Efficiency by Using Cobb – Douglas Production Function in the State Company for Drug Industries in Samarras during (1986 – 2006)

Abstract

AbstractMedical industry is one of the manufacturing industries; it occupies a great importance in the developing countries, because it contributes in building and improving human capital and economic surplus that can enhance prosperity in the country. The study aims to analyze and evaluate the productivity function of the company in Samarra, because they are important Chemical-transmutation in Iraq; hence, identified the relation between productivity and economic resources used in the production, viz, labor and capital. The problem of the study showed that there is a sum of syntheses for the elements of production. The company is however required to look for the maximum benefit of available resources and then the wanted economic efficiency. This study supposed that the company may have not achieved the economic efficiency. It is showed that the productivity function has capable of the best value on the basis the labor "wages" and “capital”, value and technical progress that was almost the best indication conformed with economic logic, it is also showed that the company passes through stages of increase of returns. This affirmed that the company did not achieve the economic efficiency at most efficiency.