Estimating Economic Growth through Cobb-Douglas Production Function, Statistical, and Goal Programming Models

Abstract

Several studies have linked economic growth to renewable energy sources utilization. The Cobb-Douglas production function model is widely applied to estimate the contribution of economic variables to the Gross Domestic Product (GDP) for countries. The aim of this research is to utilize Goal Programming and Regression models in estimating the contribution of some independent variables in explaining the growth of GDP for countries. The two models were applied to Egypt and Morocco. The results of this study show that both models are quite similar; however, the Goal Programming model provides more flexibility in allowing the Policy-Makers to integrate explicitly their preferences and incorporating additional constraints related to the decision-making context.