An Analysis of the Share of Labor Factor in the Industries Cost Function

The industrial section has a high potential and at the same time, is counted as a stable driving force toward development. This sector is of a high importance from the aspect of variety, plenty of manufactured products and its employment force. In this study the amount of the industry dependence and its being affected is calculated in relation to the workforce saving. For this sake, the theory of duality is put in to use. The institutions production behavior is scrutinized via Translog production function and various industrial sections behavior is analysed in terms of economic model and according to economic criteria. Within the study the analysis trend is the "SUR" econometric approach and analyzed period is from 1375 to 1383. The study results revealed that the traction between the laborforce and investment is negative for most of the subgategories during the focused years. This is indicative of a complementary relation among the two savings, but in some of the subgategories, like the engine-driven vehile manufacturing industry, the Morishima elasticity substitution is positive for both labor force capital. Also, te traction between the labor force and raw materials is negative for most subgategories, and this means that in most parts, there is a complementary relation between the labor force and raw materials.