The Estimation of Production Function in Romania

In this study, I have researched the relevance of investments and exports in explaining the economic growth process in Romanian economy, between 1999 and 2006 years. For this, I have used a traditional Cobb-Douglass production function. The results of its estimation show that the growth rate was positively influenced by capital stock and exports while the employment contribution was negatively. The real GDP elasticity to the capital stock variation was 1.02 in the case of the standard production function and 0.72 for the one that has as explained variable the exports too.