Nigeria's Economy Benefits from Labor Over Capital in Production Functions.
The study tested if two types of production functions, Cobb-Douglas and CES, work well for Nigeria's economy. They used data from 1970-2012 and found that both production functions are suitable. Both show increasing returns to scale, with labor contributing more to output than capital. The error correction models for both functions showed that most of the output imbalance is fixed in the short term. In conclusion, both production functions can be used to make forecasts in Nigeria.