Evaluating the Efficiency of Agricultural Management of Olive Production Factors in Lattakia Governorate Using the Cobb-Douglas Model

Abstract

The aim of this research was to evaluate the efficiency of agricultural management of olive production factors in Lattakia Governorate during the period (2004-2023) by studying the relationship between production and its factors, and estimating and analyzing the olive production function based on the Cobb-Douglas function, which illustrates the relationship between output (Q) and the production factors, namely labor (L) and capital (K). The coefficient 296,400 indicates technological efficiency, meaning that the primary output at specific values ​​for the production factors is approximately 296,400. On the other hand, this means that a 1% increase in labor leads to a decrease in output by approximately 0.93%, indicating challenges in increasing productivity. In contrast, the capital effect shows a strong positive effect, with a 1% increase in capital indicating an increase in output of approximately 0.95%. Overall, the model reflects the importance of technological efficiency and capital investment in achieving advanced levels of production, while the negative labor effect indicates the need to reevaluate labor strategies. This reflects the importance of reconsidering investment  policies on the one hand and increasing the capital intensity of labor on the other. This will have an impact in the form of increased labor productivity and the exploitation of wasted surplus labor.