Page 93 - Azerbaijan State University of Economics

Yadulla H. Hasanli: The evaluation of mutual substitution elasticity of capital and labour
factors by application of CES function for economy of Azerbaijan

1) In order to evaluate the CES function based on Marward method it was

represented in following way after logariphmation:

(10)

2) After this the approximated equations of CES function are evaluated based

on Kmeta method:

(11)

During the independence period of Azerbaijan Republic the impact of capital

and human resources on whole economy and particularly to the oil and gas sector

should be evaluated. After this the valuation and comparative analysis of the CES

function in Republic of Kazakhstan were implemented.

Initially the function (10) is evaluated based on Marward method. In this case

the following figures are taken as initial approximation:

;

=0,05;

=0,5;

=0,5.

Nate that .

92