PRODUCTIVITY ANALYSIS AND MEASURING THE RETURNS TO SCALE OF MICRO, SMALL AND MEDIUM MANUFACTURING ENTERPRISES IN THE AMBALA DISTRICT OF HARYANA STATE

Abstract

This study studies micro, small, and medium manufacturing enterprises of the Ambala District. Haryana (India). The study used Cobb Douglas production function to measure the input-output relationship, returns to scale, and marginal productivity found that all enterprises loan capital and labour employed are positively related to output, but not significantly related to technological progress. In addition, the study found that the marginal productivity of labour within the Ambala region is more than the marginal productivity of capital. This study also tried to find out the best technique that helps to achieve the best manufacturing process in selected manufacturing area recommends that all enterprises should focus their investment on labour-intensive technologies as well as also on capital-intensive techniques, therefore, they can get a positive return.