On Restricted Least Squares - The Cobb-Douglas Production Function For The Nigerian Economy

Developing Country Studies
ISSN 2224-607X (Paper) ISSN 2225-0565 (Online)

Vol 2, No.8, 2012
On Restricted Least Squares:
Funct
ADETUNJI, Ademola A
1. adecap4u@yahoo.com
2.
Department of Mathematics and Statistics, The Federal Polytechnic, P.M.B. 5351, Ado

Abstract
The Cobb-Douglas production function (
empirical analyses of growth and productivity
economy from 1990 to 2009 and uses the F
linear restriction of Cobb-Douglas production functions parameters
Using data on Nigerias Gross Domestic Product (GDP), Capital and total labour forc
Nigerian economy is probably characterized by constant returns to scale over the sample period and therefore,
using the restricted regression as stipulated by Cobb
Capital/Labour ratio increased by 1 percent, on average, labour productivity went up by about 1 percent.
Keywords: Regression, Restricted Least Square, Cobb

1. Introduction
In economic, the Cobb-Douglas functional form of production is widely
output and two inputs. It was developed and tested against statistical evidence by Charles Cobb and Paul
Douglas during 1900 1947, (Douglas, 1976).
work of (Cobb and Douglas, 1928), who used data for the U.S. manufacturing sector for 1899
researchers like (Brown, 1966); (Sandelin, 1976)
have been given to Wicksell for its disc
Douglas, 1928) were not the first economists to use the functional form named after them.
that Wicksell employed the Cobb-Douglas functional form in production analysi
also notes that Pareto used the Cobb
parameters of aggregate production functions is central to many of todays works on growth, technological change
productivity, and labour. Empirical estimates of aggregate production functions are essential tools of analysis in
macroeconomics, and important theoretical constructs, such as potential output, technical change, or the demand
for labour, are based on them, (Felipe and Adams, 2005)
In its most standard form for production of a single good (output) with two factors (inputs), the Cobb
function is: Y = AL

Y = total production (like the monetary value of all goods in a year)
A = Total factor productivity
L = Labour input
K = Capital input
and = output elasticities of Labour and Capital respectively
Cobb and Douglas were influenced by statistical evidence that applied to show that labour and capital shares of
total output were constant over tim
squares regression of their production function,
In stochastic form, Cobb-Douglas function becomes:
= oX
1
[
X
2
0
c
u
i

Y = output of a production process (like GDP of a country)
X
1i
= input 1 (one of the inputs that contributes to the output Y e.g. labour)
X
2i
= input 2 (the second input that contributes to the output Y e.g. capital)
u = stochastic disturbance term
e = base of natural logarithm

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68
On Restricted Least Squares: the Cobb-Douglas Production
Function for the Nigerian Economy

ADETUNJI, Ademola A
1
IBRAHEEM, Ademola G
2
ADEMUYIWA, Justus A
adecap4u@yahoo.com +2348060754267 (Corresponding Author)
ibraheemademola30@yahoo.com +2348032271093
3. ademuyiwajustus@yahoo.com +2348067604823

Department of Mathematics and Statistics, The Federal Polytechnic, P.M.B. 5351, Ado-Ekiti, Ekiti State, Nigeria
Douglas production function (Y = AL
) is still today the most ubiquitous form in theoretical and

empirical analyses of growth and productivity (Felipe and Adams, 2005). This paper examines the Nigerian
economy from 1990 to 2009 and uses the F-test approach of Restricted Least Square (RLS) to find out if the
Douglas production functions parameters ( + ) = 1 is significant to Nigeria economy.
Using data on Nigerias Gross Domestic Product (GDP), Capital and total labour force, it was found that
using the restricted regression as stipulated by Cobb-Douglas function may not be misleading. Hence, if
tio increased by 1 percent, on average, labour productivity went up by about 1 percent.
Regression, Restricted Least Square, Cobb-Douglas, Returns to Scale
Douglas functional form of production is widely used to represent the relationship of
Douglas, 1976). The origin of the Cobb-Douglas form is dated back to the original
, who used data for the U.S. manufacturing sector for 1899
(Sandelin, 1976); and (Samuelson, 1979) had indicated that the credit should
for its discovery since he started working on it in the 19th century.
were not the first economists to use the functional form named after them.
Douglas functional form in production analysis, twenty years earlier. Weber
also notes that Pareto used the Cobb-Douglas functional form to represent Utility in 1892.
parameters of aggregate production functions is central to many of todays works on growth, technological change
(Felipe and Adams, 2005).
In its most standard form for production of a single good (output) with two factors (inputs), the Cobb
= total production (like the monetary value of all goods in a year)
= output elasticities of Labour and Capital respectively
total output were constant over time in developed countries. They explained this by statistically fitting least
squares regression of their production function, (Gujarati and Sangeetha, 2007).
Douglas function becomes:

= output of a production process (like GDP of a country)
= input 1 (one of the inputs that contributes to the output Y e.g. labour)
= input 2 (the second input that contributes to the output Y e.g. capital)
www.iiste.org

Douglas Production
ADEMUYIWA, Justus A
3

+2348060754267 (Corresponding Author)

+2348032271093
+2348067604823
Ekiti, Ekiti State, Nigeria
is still today the most ubiquitous form in theoretical and
This paper examines the Nigerian
roach of Restricted Least Square (RLS) to find out if the
( + ) = 1 is significant to Nigeria economy.
e, it was found that the
Douglas function may not be misleading. Hence, if
tio increased by 1 percent, on average, labour productivity went up by about 1 percent.
used to represent the relationship of
Douglas form is dated back to the original
, who used data for the U.S. manufacturing sector for 1899 1922. Although,
had indicated that the credit should
overy since he started working on it in the 19th century. (Cobb and
were not the first economists to use the functional form named after them. (Weber, 1998) notes
s, twenty years earlier. Weber
Douglas functional form to represent Utility in 1892. The estimation of the
parameters of aggregate production functions is central to many of todays works on growth, technological change,
In its most standard form for production of a single good (output) with two factors (inputs), the Cobb-Douglas
e in developed countries. They explained this by statistically fitting least
(i)
Vol 2, No.8, 2012
2. Properties of Cobb-Douglas Production Function
is the (partial) elasticity of output with respect to the labour input, that is, it measures the percentage change
in output for, say, a 1% change in the labour input, holding the capital input constant.
is the (partial) elasticity of output with respe
The sum ( + ) gives information about the returns to scale, that is, the response of output to a proportionate
change in the inputs.
If the sum is 1, then, there are constant returns to scale, t
tripling the input will triple the output, and so on.
If the sum is less than 1, there are decreasing returns to scale
output.
If the sum is greater than 1, there are increasing returns to scale
the output.
Output elasticity measures the responsiveness of output to a change in levels of either labour or capital
production, ceteris paribus. If ( + ) = 1, the production function has a constant returns to scale (i.e. the
production output increases by a constant factor). This implies that doubling capital (K) and labour (L) will yield
double output (Y). If ( + ) < 1, returns to scale are decreasing, and if ( + ) > 1, returns to scale are
increasing.

3. Literature Review
(Elias, 1992) in (Gujarati and Sangeetha, 2007)
from 1955 1974. Using data on the countrys Gross Domestic Product, Employment (labour), and Fixed capital,
they found that Mexican economy was probably characterized by constant returns to scale over the sampled
period and concluded that using Restricted Least Squares obtained for
also observed that increasing capital/employment ratio by 1 percent, on the average will increase the labour
productivity by about 1 percent.
(Effiong and Umoh, 2010) estimated the profit efficiency and the relevant
levels for egg-laying industry in Akwa
stochastic profit frontier. With the aid of a structured questionnaire, they collected primary data from sixty
poultry farms across the six agricultural zones of the state. Empirical results revealed the mean economic
efficiency of 65.00% implying the need for increased resource use efficiency Their results further showed that
variable inputs such as price of feeds, p
that profit decreased with increase in input prices while fixed inputs such as capital inputs and farm size were
statistically significant and had the right sign a
its utilization. Their study suggested that policy that would enhance extension services, encourage membership
in cooperative farming and enhanced good and adequate utilization of improved livestock inp
place.
(Abidemi, 2010) examines productivity in the banking sector by way of estimating two major production
functions known in the economic literature. The result obtained from the Ordinary Least Square (OLS) estimates
shows that substitution parameters and (substitution parameters for capital and labour, respectively) confirms
the a priori expectation that the duo of and are positive values of less than one. He found that the addition of
the values of and is greater than o
capital and labour, the output in terms of deposit will be more than doubled. He also observes that the
substitution parameters in the Constant Elasticity of Substitution Product
which supports the theory. In his final analysis, his study supports economic theory on the specification of both
Cobb-Douglas and Constant Elasticity of Substitution production functions.
In (Abiola, 2010), (Douglas, 19
concluded that labour is the single most important factor of production in a certain subtle sense. Both labour and
capital are needed in production: they opined that when capital is taken
negligible total products will be left with. But they found that a one percent increase in labour seems to increase
output about three times as much as would a one percent increase in capital. This largely corresponds
widely known fact that wages are about three
(Liedholm, 1964) was perhaps the first work to be done on productivity in Nigeria. An attempt was made at
finding out between labour and capital, which input con
Nigeria and it was found that labours contribution to the output of the selected manufacturing industries was
larger than that of capital. This position was confirmed by
(Ekanem, 2003) provides estimates of Total Factor Productivity for the banking industry in Nigeria for the
period 1986 2000. The methodology in the work involved the use of the Growth Accounting Model based on

0565 (Online)

69
Douglas Production Function
in output for, say, a 1% change in the labour input, holding the capital input constant.
is the (partial) elasticity of output with respect to the capital input, holding the labour input constant.
) gives information about the returns to scale, that is, the response of output to a proportionate
If the sum is 1, then, there are constant returns to scale, that is, doubling the inputs will double the output,
tripling the input will triple the output, and so on.
If the sum is less than 1, there are decreasing returns to scale doubling the inputs will give less double the
there are increasing returns to scale doubling the inputs will give more double of
Output elasticity measures the responsiveness of output to a change in levels of either labour or capital
( + ) < 1, returns to scale are decreasing, and if ( + ) > 1, returns to scale are
Gujarati and Sangeetha, 2007) used Restricted Least Squares to observe Mexican Economy
on the countrys Gross Domestic Product, Employment (labour), and Fixed capital,
period and concluded that using Restricted Least Squares obtained for the data set could not be harmful. They
estimated the profit efficiency and the relevant indices determining efficiency
laying industry in Akwa-Ibom State, Nigeria utilizing Cobb-Douglas production function based on
ltry farms across the six agricultural zones of the state. Empirical results revealed the mean economic
variable inputs such as price of feeds, price of drugs and medication were statistically significant thus indicating
statistically significant and had the right sign a-priori indicating that profit increased with increase in the level of
in cooperative farming and enhanced good and adequate utilization of improved livestock inp
examines productivity in the banking sector by way of estimating two major production
titution parameters and (substitution parameters for capital and labour, respectively) confirms
the values of and is greater than one, which indicates that as the banking sector doubles its inputs in terms of
substitution parameters in the Constant Elasticity of Substitution Production Function were equally positive,
Douglas and Constant Elasticity of Substitution production functions.
(Abiola, 2010), (Douglas, 1934) and (Solow, 1957) in their study on capital
capital are needed in production: they opined that when capital is taken away, or alternatively all labour and
output about three times as much as would a one percent increase in capital. This largely corresponds
widely known fact that wages are about three-fourth of the share of property incomes.
was perhaps the first work to be done on productivity in Nigeria. An attempt was made at
finding out between labour and capital, which input contributed more to the output of major industries in Eastern
larger than that of capital. This position was confirmed by (Osagie and Odaro, 1975).
provides estimates of Total Factor Productivity for the banking industry in Nigeria for the
2000. The methodology in the work involved the use of the Growth Accounting Model based on
www.iiste.org

ct to the capital input, holding the labour input constant.
) gives information about the returns to scale, that is, the response of output to a proportionate
hat is, doubling the inputs will double the output,
doubling the inputs will give less double the
doubling the inputs will give more double of
Output elasticity measures the responsiveness of output to a change in levels of either labour or capital used in
( + ) < 1, returns to scale are decreasing, and if ( + ) > 1, returns to scale are
used Restricted Least Squares to observe Mexican Economy
on the countrys Gross Domestic Product, Employment (labour), and Fixed capital,
the data set could not be harmful. They
indices determining efficiency
Douglas production function based on
ltry farms across the six agricultural zones of the state. Empirical results revealed the mean economic
rice of drugs and medication were statistically significant thus indicating
g that profit increased with increase in the level of
in cooperative farming and enhanced good and adequate utilization of improved livestock inputs should be put in
examines productivity in the banking sector by way of estimating two major production
titution parameters and (substitution parameters for capital and labour, respectively) confirms
ne, which indicates that as the banking sector doubles its inputs in terms of
ion Function were equally positive,
in their study on capital-labour substitution
away, or alternatively all labour and
output about three times as much as would a one percent increase in capital. This largely corresponds with the
was perhaps the first work to be done on productivity in Nigeria. An attempt was made at
tributed more to the output of major industries in Eastern
provides estimates of Total Factor Productivity for the banking industry in Nigeria for the
2000. The methodology in the work involved the use of the Growth Accounting Model based on
Vol 2, No.8, 2012
aggregate production functions. In the study
production process of the industry in Nigeria was found to be the Cobb
estimated Cobb-Douglas function were used to calibrate the Growth Accounting Model. The res
measured aggregate output grew at an average annual rate of 4.29%, while Total Factor Productivity grew at an
average annual rate of 3.33%. The study analyzed that TFP provided 78% of the recorded growth in the industry
during this period.
(Ekanem and Oyefusi, 2000) estimated the Cobb
production functions for the manufacturing industry in Nigeria for the period 1980
consideration the phenomenon of idle capacity th
models when compared with the work of
results in terms of goodness of fit. Of the two production functions estimated, the Cobb
Function performs better considering all the relevant econometric test criteria. This then showed that the
Cobb-Douglas Production Function gives a better explanation of the aggregate production process in the
manufacturing industry in Nigeria for the period studied.

4. Materials and Method
The dataset used for this research work are Real Gross Domestic Product and Capital expenditure has obtained
from Central Bank of Nigerias Statistical Bulletin, 2011 and the total labour force of Ni
obtained from World Bank national accounts data, and OECD National Accounts data files.
Written (i) in log form, the equation becomes:
ln
= lno + [ lnX
1
+ 0 lnX
2
+ u
ln
= + [ lnX
1
+ 0 lnX
2
+ u

If there are constant returns to scale (equiproportional change in output for an equiproportional change in the
input), economic theory suggests that + = 1. This is a form of linear equality
the validity of (ii), there are two possible approaches.
The t-Test Approach (The unrestricted/unconstrained Regression)
This procedure involves estimating parameters of (iii) without considering the linear equality restric
1) explicitly by using Ordinary Least Squares (OLS) method. Having estimated and , a test of
hypothesis/restriction is conducted using t
t
0
=
([
+ 0
)-1
_vu([
)+ vu(0
)+2 Co([
)

The test statistic is compared with
observation and k is the number of estimated parameters in (iii) and appropriate decision is taken on the set
hypothesis {H
0
: (+) = 1}

The F-Test Approach (Restricted Least Square, RLS)
The t-test approach is post-mortem in that it only finds out whether the linear restriction is satisfied after
estimating the unrestricted regression. However, the F
into the estimating procedure at the outset.
Since + = 1, hence = 1 . Substituting (1
ln
= + (1 - 0) lnX
1
+ 0 lnX
2
ln
= + lnX
1
- 0 lnX
1
+ 0 lnX
(ln
- lnX
1
) = + 0 (lnX
2
-ln
ln(
X
1
) = + 0 ln(X
2
X
1
) +
Variables (
X
1
) and (X
2
X
1
)
output with one of the inputs and (
estimated from (v), can be estimated using = 1
The overall implication of this is that the procedure ensures that sum of the estimated coefficients of the two
inputs equal 1 and hence, the name Restricted Least Squares, RLS. The generalization of this procedure into
more than one linear equality restriction is explained by

Examining the validity of RLS
The validity of the Restricted Least Squares can be examined by applying F

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70
aggregate production functions. In the study, the most appropriate production function that describes the
production process of the industry in Nigeria was found to be the Cobb- Douglas. The parameters of the
Douglas function were used to calibrate the Growth Accounting Model. The res
estimated the Cobb-Douglas and the Constant Elasticity of Substitution (CES)
production functions for the manufacturing industry in Nigeria for the period 1980
consideration the phenomenon of idle capacity that has characterized the industry at the time. The results of the
models when compared with the work of (Liedholm, 1964) and (Osagie and Odaro, 1975)
results in terms of goodness of fit. Of the two production functions estimated, the Cobb
Douglas Production Function gives a better explanation of the aggregate production process in the
Nigeria for the period studied.
from Central Bank of Nigerias Statistical Bulletin, 2011 and the total labour force of Ni
World Bank national accounts data, and OECD National Accounts data files.
Written (i) in log form, the equation becomes:
u

(lno = )
input), economic theory suggests that + = 1. This is a form of linear equality restriction. In order to examine
the validity of (ii), there are two possible approaches.
Test Approach (The unrestricted/unconstrained Regression)
This procedure involves estimating parameters of (iii) without considering the linear equality restric
hypothesis/restriction is conducted using t-test where the test statistic is given by:

The test statistic is compared with to
2
(n -k) where is the level of significance, n is the number of
Test Approach (Restricted Least Square, RLS)
mortem in that it only finds out whether the linear restriction is satisfied after
estimating the unrestricted regression. However, the F-test approach incorporates the linear equality restriction
into the estimating procedure at the outset.
. Substituting (1 ) for in (iii) gives:
2
+ u

X
2
+u

lnX
1
) + u

are of great economic importance since (
X
1
) measures the ratio of the
(X
2
X
1
) compares one of the input variables with the other. Once can be
estimated from (v), can be estimated using = 1 .
restriction is explained by (Theil, 1971).
The validity of the Restricted Least Squares can be examined by applying F-test where
www.iiste.org

, the most appropriate production function that describes the
Douglas. The parameters of the
Douglas function were used to calibrate the Growth Accounting Model. The results showed that
Douglas and the Constant Elasticity of Substitution (CES)
production functions for the manufacturing industry in Nigeria for the period 1980 1997, taking into
at has characterized the industry at the time. The results of the
(Osagie and Odaro, 1975) gave satisfactory
results in terms of goodness of fit. Of the two production functions estimated, the Cobb-Douglas Production
Douglas Production Function gives a better explanation of the aggregate production process in the
from Central Bank of Nigerias Statistical Bulletin, 2011 and the total labour force of Nigeria 1990 2009
World Bank national accounts data, and OECD National Accounts data files.
(ii)
(iii)
restriction. In order to examine
This procedure involves estimating parameters of (iii) without considering the linear equality restriction ( + =
(iv)
where is the level of significance, n is the number of
mortem in that it only finds out whether the linear restriction is satisfied after
ach incorporates the linear equality restriction
(v)
measures the ratio of the
compares one of the input variables with the other. Once can be
Vol 2, No.8, 2012
F
cuI
=
(SSL
R
- SSLg
UR
)u
SSL
UR
(n-k)

SSE
R
is the sum of squares of error for restricted regression in (v)
SSE
0R
is the sum of squares of error for unrestricted regression in (iii)
a is number of linear restriction ( a = 1 in Cobb
k is the number of estimated parameters in (iii)
n is the number of observations
The F
cal
is compared with F
table
with [
hypothesis, H
0
: The Restricted Least Squares (RLS) is not significant. If the RLS is not si
is probably characterized by constant returns to scale over the sampled period and hence, there may be no harm
in using the restricted regression in (v).

5. Results and Discussion
Fitting the Cobb-Douglas production function to the
and total labour force from 1990 to 2009 gives:
ln0P
t
= -129.4S92u8 +8.u9S468
t = (-7.609275) (7.644071)
P-value = (0.000001) (0.000001)
Std Err. = (17.010715) (1.059052)
R
2
= 0.978207
The equation above (vii) shows that the output/labour elasticity is about 8.
about 0.25. if we add these coefficients, we obtain 8.36, indicating that the Nigeria economy has a very high
increasing returns to scale. As high as this value, it is very essential to subject this finding to statis
hypothesis. Imposing the restriction of constant returns to scale gives the following result:
ln(0PIobour)
t
= S.78SSu7
t = (6.845303)
P-value =
Std Err. = (0.553008)
R
2
= 0.876866
* UR Unrestricted Regression
Since the independent variables in (vii) and (viii) differ,

F
cuI
=
(SSE
R
- SSE
0R
)o
SSE
0R
(n -k)
=
(S.9SS77u
The F
cal
follows the F-distribution
and 5% (4.45) level.

6. Conclusion
The conclusion then is that the Nigerian economy is probably characterized by constant returns to scale over the
sample period and therefore, using the restricted regression as stipulated by Cobb
harmful. Hence, if Capital/Labour ratio increased by 1 percent, on average, labour productivity went up by about
1 percent over the sampled period.

7. Policy Implications
This study examined Cobb-Douglas coefficients restriction on Nigeria economy from 1990 to 2009 by way of
estimating the mostly utilized production functions in the economics literature. The result obtained from the OLS
estimates shows that substitution parameters, and do not support economic theory of the duo being positive
values of less than one. The addition of the values of and is greater than one which suggests that as the
Nigeria economy doubles its inputs in terms of labour and capital, the output in terms of GDP will be more than
doubled but a test of significance revealed otherwise. The study su
the Cobb-Douglas and production functions in researching into inputs/output relationship. The study, therefore,
recommends for Nigerian government and those involve in decision making that for desired increase
productivity in terms of output like the GDP, more units of both labour and capital should be employed.

0565 (Online)

71

is the sum of squares of error for restricted regression in (v)
is the sum of squares of error for unrestricted regression in (iii)
a is number of linear restriction ( a = 1 in Cobb-Douglas function)
eters in (iii)
with [a, (n k)] degree of freedom at specified level of significance with the null
: The Restricted Least Squares (RLS) is not significant. If the RLS is not si
in using the restricted regression in (v).
Douglas production function to the data on Nigerias Gross Domestic Product (GDP), Capital
and total labour force from 1990 to 2009 gives:
u9S468 lnIobour
t
+ u.2SSSS9 lnCopitol
t

(7.644071) (1.951656)
(0.000001) (0.067654)
(1.059052) (0.129817)

*
RSS
UR
= 38.525827
*
SSE
UR
= 0.858280
The equation above (vii) shows that the output/labour elasticity is about 8.10 and the output/capital elasticity is
increasing returns to scale. As high as this value, it is very essential to subject this finding to statis
+ 1.19u4S6 ln(CopitolIobour)
t
(viii)
(6.845303) (11.321751)
(0.000002) (0.000000)
(0.553008) (0.105146)

^
RSS
R
= 28.169922
^
SSE
R
= 3.955770
^ Restricted Regression
Since the independent variables in (vii) and (viii) differ, F
cal
in (vi) is used to obtain F-value
( 9SS77u - u.8S828u)1
u.8S828u17
= S.6u89S
with (1, 17) degree of freedom. Hence, F
cal
is significant at both 1% (8.40)
sample period and therefore, using the restricted regression as stipulated by Cobb-Douglas function may not be
l/Labour ratio increased by 1 percent, on average, labour productivity went up by about

Douglas coefficients restriction on Nigeria economy from 1990 to 2009 by way of
timating the mostly utilized production functions in the economics literature. The result obtained from the OLS
tion of the values of and is greater than one which suggests that as the
doubled but a test of significance revealed otherwise. The study supports economic theory in the specification of
Douglas and production functions in researching into inputs/output relationship. The study, therefore,
www.iiste.org

(vi)
degree of freedom at specified level of significance with the null
: The Restricted Least Squares (RLS) is not significant. If the RLS is not significant, the economy
Nigerias Gross Domestic Product (GDP), Capital
(vii)
= 0.858280
10 and the output/capital elasticity is
increasing returns to scale. As high as this value, it is very essential to subject this finding to statistical
(viii)
value
is significant at both 1% (8.40)
Douglas function may not be
l/Labour ratio increased by 1 percent, on average, labour productivity went up by about
Douglas coefficients restriction on Nigeria economy from 1990 to 2009 by way of
timating the mostly utilized production functions in the economics literature. The result obtained from the OLS
tion of the values of and is greater than one which suggests that as the
pports economic theory in the specification of
Douglas and production functions in researching into inputs/output relationship. The study, therefore,
Vol 2, No.8, 2012

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45
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Vol 2, No.8, 2012
Figure 1
Figure 2
Figures 1 and 2 above show upward movements for the log transformation of all the variables under
consideration.

16
18
20
22
24
26
28
30
32
34
Cobb-Douglas Logarithmic
ln GDP_Current Basic Prices
6
7
8
9
10
11
12
13
14
Cobb-Douglas Logarithmic
ln (GDP/LABOUR)

0565 (Online)

73

Year
Douglas Logarithmic-Scale for Nigeria GDP, Capital
and Labour
ln GDP_Current Basic Prices ln Labour ln Capital_Expenditure
Year
Douglas Logarithmic-Scale for (GDP/Capital ) and
(Labour/Capital)
ln (GDP/LABOUR) ln (CAPITAL/LABOUR)
www.iiste.org

Scale for Nigeria GDP, Capital
ln Capital_Expenditure
Scale for (GDP/Capital ) and
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) is still today the most ubiquitous form in theoretical and

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