Measuring elasticity of substitution: Poultry broiler sector of Bangladesh

MD. Mahmudul Hassan, Bangladesh University of Business and Technology

Abstract: The present paper is mainly concerned with finding the employment potential in different sizesof poultry broiler farmsi.e. small, medium and large farms in Bangladesh. This study makes the first attempt to estimate the Constant Elasticity of Substitution (CES) model for Bangladesh poultry production. Estimated results of CES suggests that the value of elasticity of substitution between labor and farm capital machineries is comparatively high in case of broiler medium and very particularly of large farms which indicate that there is great potential for employment in large broiler farms provided there are no factor price distortions. And small farms exhibits lower substitution value. The weak elasticity of substitution value suggests that production is not easy to have the substitutability between its inputs. In this regard, there occurs urgency of doing something for the small farms from the govt. at a large scale.

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