THE IMPACT OF TECHNOLOGICAL DEVELOPMENT ON INDUSTRIAL OUTPUT IN IRAQ (1970-1990)

Abstract

The study measures the effect of the Technological Development on the Iraqi industrial output through out estimation of production function .The study illustrates that the technological Development positively affects the Iraqi industrial output (0.008) .Industrial sector operates at a decreasing return to scale (0.87).The elastisty of substitution between labour and capital is high . The estimatian showed no Disembodid technical change .The study explains that the average of capital in production process is (0.16) and that average contribution for labour is (0.83) . So that the effect of technological Development on the labour is (5.21) while that effect on capital is (0.19) .