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Abstract
Rice is still a staple food for the people of Indonesia. If Indonesia relies on imported rice, it will be very politically vulnerable if there is a shortage of rice supply in the international market. Therefore, the productivity of rice farming should be kept rising in line with the rate of population increase. This paper analyzes the growth of total factor productivity of paddy farming efforts. Total productivity is decomposed into four parts: the advancement of technology, technical efficiency, allocative efficiency and the effect of business scale. If each component of productivity growth is known, it will be determined strategies to increase rice production. Data analysis using secondary data published by the Indonsian Statistics Agency (BPS). Analyses were performed using an econometric approach. The results show that growth in total factor productivity declined with the slowdown. Positive contributor to the growth of total factor productivity is the change in the technical and business scale effects; whereas negative contributor is the technical and allocative efficiency. Growth in rice production is because of growth in the use of inputs and other factors such as the expansion and increase in cropping index. The growth in total factor productivity can be increased by improving technical and allocative efficiencies.
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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.
References
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- Belbase, K. and Grabowski, R., 1985. ‘Technical efficiency in Nepalese agriculture, Journal of Development Areas’, 19: 515-525.
- Bhattarai, M. and Mariyono, J. 2016. ‘The Economic aspects of chili production in Central Java – Indonesia’, Economic Journal of Emerging Markets, 8 (2): 85-97.
- Felipe, J. and J.S.L. McCombie, 2003. ‘‘Some methodological problems with the Neoclassical analysis of the East Asian Miracle’, Cambridge Journal of Economics, 27 (5): 595-721.
- Fox, K.J., R.Q. Grafton, T. Kompas and T.N. Che, , 2006. Production and capacity reduction: the case of fishery. The Australian Journal of Agricultural and Resource Economics, 50: 189–206.
- Kalirajan, K., 2004. ‘An analysis of India’s reform dynamics’, Oxford Development Studies, 32 (1):119-134.
- Kalirajan, K.P., Mythili, G., and Sankar, U., 2001. Accelerating Growth through Globalisation of Indian Agriculture. MacMillan, New Delhi.
- Kumbhakar, S. C. and Lovell, C. A. K., 2000. Stochastic Frontier Analysis, University Press, Cambridge.
- Mariyono, J. 2009. ‘Technological bias in Indonesian rice production: Why does agrochemical use increase over time?’, Quarterly Journal of International Agriculture, 48 (1): 47-65.
- Mariyono, J. 2013. ‘Environmentally adjusted productivity growth of Indonesian rice production,’ Journal of Indonesian Economy and Business, 28 (1): 1-22.
- Mariyono, J. 2014. ‘Dead weight loss associated with economic efficiency use of esticides in Indonesian rice production’, Economic Journal of Emerging Market, 6 (2): 69-84.
- Mariyono, J. 2015. ‘Green revolution- and wetland-linked technological change of rice agriculture in Indonesia’, Management of Environmental Quality: an International Journal, 26 (5): 683-700.
- Mariyono, J. 2016. ‘Impacts seed technology improvement on economic aspects of chilli production in Central Java–Indonesia’, Jurnal Ekonomi Pembangunan, 17 (1): 1-14.
- Mariyono, J. and Sumarno 2015. ‘Chilli production and adoption of chilli-based agribusiness in Indonesia’, Journal of Agribusiness in Developing and Emerging Economies, 5 (1);57-75.
- Mariyono, J., Harini, R and Agustin, N.K. (2007). Impact of economic development and population growth on agricultural land conversion in Jogjakarta: a dynamic analysis. Jurnal Ekonomi Pembangunan, 8 (1): 50-61.
- Maulana, M., 2004. ‘Peranan luas lahan, intensitas pertanaman dan produktivitas sebagai sumber pertumbuhan padi sawah di Indonesia 1980-2001’, Jurnal Agro Ekonomi, 22 (1): 74-95.
- Shapiro, K.H. 1983. ‘Efficiency differentials in peasant agriculture and their implications for development policies’, Journal of Development Studies, 19: 179–190.
- Teruel, R.G., and Koruda, Y., 2004. ‘An empirical analysis of productivity in Philippine agriculture, 1974-2000’, Asian Economic Journal, 18 (3): 319-344.
References
Bauer, P.W., 1990. ‘Decomposing TFP growth in the presence of cost inefficiency, nonconstant return to scale, and technological progress’, Journal of Productivity Analysis, 1: 287-299.
Belbase, K. and Grabowski, R., 1985. ‘Technical efficiency in Nepalese agriculture, Journal of Development Areas’, 19: 515-525.
Bhattarai, M. and Mariyono, J. 2016. ‘The Economic aspects of chili production in Central Java – Indonesia’, Economic Journal of Emerging Markets, 8 (2): 85-97.
Felipe, J. and J.S.L. McCombie, 2003. ‘‘Some methodological problems with the Neoclassical analysis of the East Asian Miracle’, Cambridge Journal of Economics, 27 (5): 595-721.
Fox, K.J., R.Q. Grafton, T. Kompas and T.N. Che, , 2006. Production and capacity reduction: the case of fishery. The Australian Journal of Agricultural and Resource Economics, 50: 189–206.
Kalirajan, K., 2004. ‘An analysis of India’s reform dynamics’, Oxford Development Studies, 32 (1):119-134.
Kalirajan, K.P., Mythili, G., and Sankar, U., 2001. Accelerating Growth through Globalisation of Indian Agriculture. MacMillan, New Delhi.
Kumbhakar, S. C. and Lovell, C. A. K., 2000. Stochastic Frontier Analysis, University Press, Cambridge.
Mariyono, J. 2009. ‘Technological bias in Indonesian rice production: Why does agrochemical use increase over time?’, Quarterly Journal of International Agriculture, 48 (1): 47-65.
Mariyono, J. 2013. ‘Environmentally adjusted productivity growth of Indonesian rice production,’ Journal of Indonesian Economy and Business, 28 (1): 1-22.
Mariyono, J. 2014. ‘Dead weight loss associated with economic efficiency use of esticides in Indonesian rice production’, Economic Journal of Emerging Market, 6 (2): 69-84.
Mariyono, J. 2015. ‘Green revolution- and wetland-linked technological change of rice agriculture in Indonesia’, Management of Environmental Quality: an International Journal, 26 (5): 683-700.
Mariyono, J. 2016. ‘Impacts seed technology improvement on economic aspects of chilli production in Central Java–Indonesia’, Jurnal Ekonomi Pembangunan, 17 (1): 1-14.
Mariyono, J. and Sumarno 2015. ‘Chilli production and adoption of chilli-based agribusiness in Indonesia’, Journal of Agribusiness in Developing and Emerging Economies, 5 (1);57-75.
Mariyono, J., Harini, R and Agustin, N.K. (2007). Impact of economic development and population growth on agricultural land conversion in Jogjakarta: a dynamic analysis. Jurnal Ekonomi Pembangunan, 8 (1): 50-61.
Maulana, M., 2004. ‘Peranan luas lahan, intensitas pertanaman dan produktivitas sebagai sumber pertumbuhan padi sawah di Indonesia 1980-2001’, Jurnal Agro Ekonomi, 22 (1): 74-95.
Shapiro, K.H. 1983. ‘Efficiency differentials in peasant agriculture and their implications for development policies’, Journal of Development Studies, 19: 179–190.
Teruel, R.G., and Koruda, Y., 2004. ‘An empirical analysis of productivity in Philippine agriculture, 1974-2000’, Asian Economic Journal, 18 (3): 319-344.