Technical progress and input substitution. The case of the cement industry in Colombia

This study analyzes technical change and efficiency level in the Colombian cement industry. We use the short-nln production function approach in order to estimate efficiency measures and the main features of technical change. A time series covers the period between 1968 and 1988. The data base of this study includes all individual cement companies. This study shows that the Colombian cement industry experiences a clear structural change. This is expressed particularly by a dynamic input substitution process. On the other hand, the efficiency results compare to internacional standars, placing this industrial sector very near the international average.