Main Article Content
Abstract
Agriculture still plays a key role in Indonesian economic development, but rice pro-duction is still less competitive than that in other countries. One possible cause is low pro-ductivity, which is to some extent dependent on technical efficiency. This study measures the technical efficiency of rice production in five regions, and examines factors determining its variability. This study uses stochastic frontier of production functions to estimate the techni-cal efficiency. The results indicate that variation in rice production is due largely to varia-tion in technical efficiency. Rice production in Bali is the most technically efficient, whereas in Kalimantan, Sulawesi and Nusa-Tenggara are still inefficient. The efficiency is dependent on facilities available in each region, government programs and the quality of land. Thus there is still a considerable opportunity for improvement in productivity of rice farms outside Java and Bali, given the state of agricultural technology for rice production. Improving ag-ricultural facilities, such as water irrigation and training is capable of enhancing productiv-ity of rice.
Keywords: technical efficiency, stochastic frontier production function, panel data analysis
Keywords: technical efficiency, stochastic frontier production function, panel data analysis
Article Details
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
Mariyono, J. (2009). Geographical Distribution of Technical Efficiency in Indonesian Rice Production during The Period of 1979-1994. Economic Journal of Emerging Markets, 11(1). https://doi.org/10.20885/ejem.v11i1.573