Analysis of Livestock Production in Nicaragua Using the Cobb-Douglas Production Function, 2008–2018

Abstract

The following article presents an analysis of the production of the livestock sector in Nicaragua, where the different economic plans and policies that have been implemented in the sector for its economic and productive development are presented. These policies have allowed the sector to establish and consolidate itself as one of the most important, thanks to the investment of government plans to promote the growth and progress of this economic activity Likewise, to prepare the variables to be used in this research, the Denton-Chollette method was used for the conversion and quarterly calculation of the main variables in order to obtain the indicator of the time frequency required to achieve the model's results. In this case, the Cobb Douglas production function was used to determine if the independent variables used in this model, which are labor and capital in the country's livestock sector, affect livestock production in Nicaragua in this particular case. This function allows us to understand the scaled growth of production based on the production factors labor (L) and capital (K). Therefore, the results of the model indicate that these productive factors affect the production of this sector. This shows that both labor and capital are important for the operation and growth of this productive sector, as well as in complement to the policies and plans that have been implemented for the economic advancement of the sector.