Sectoral Variations on Technical Efficiency and Return to Scale in the Indonesian Economy

This paper discusses on sectoral variations of technical effciency and return to scale in the Indonesian economy. Employing regression analysis of Cobb-Douglas production function, thesecoefficientswere calculated. Nine economic sectors in the Indonesian economy: Agriculture, Mining and Quarying, Manufacturing, Electricity,Gas and Drinking Water, Construction, Trade, Hotel and Restaurant, Transportation and Communication, Finance, Rental and Corporate Services, and Services, were exercised to study the variation of those coefficiens. Sectoral data on gross domestic product, capital stock and employment are those from the years 1967 to 2007 collected from many documents available at the National Statistics Agency. The result shows that the coeffiecients of technical efficiency do vary among sectors. Those sectors in which the coefficients were above that at the national level, experienced decreasing return to scale. On the contrary, those sectors in which the coeffiecients were below that at national level, experienced increasing return to scale. DOI: 10.15408/sjie.v5i2.3400

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Significance of Experience, Farm Size, Quantity of Propagules and Location f or Seaweed Farmers in the Divided Island of Sebatik

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/09.09.2018/007 ◽

2018 ◽

Vol 9 (9) ◽

pp. 825-832

Author(s):

James M. Alin ◽

◽

Datu Razali Datu Eranza ◽

Arsiah Bahron ◽

◽

...

Keyword(s):

Regression Analysis ◽

Multiple Regression Analysis ◽

Multiple Regression ◽

Production Function ◽

Weather Conditions ◽

Education Level ◽

Farm Size ◽

Total Production ◽

Explanatory Factors ◽

Douglas Production Function

Seaweed-Kappaphycus-Euchema Cottonii and Denticulum species was first cultivated at Sabah side of Sebatik in 2009. By November 2014, sixty one Sabahan seaweed farmers cultivated 122 ha or 3,050 long lines. Thirty Sabahan seaweed farmers in Kampung Pendekar (3.2 m.t dried) and 31 in Burst Point (12.5 m.t dried) produced 16 metric tonnes of dried seaweed contributed 31% to Tawau’s total production (51 m.t). The remaining 69% were from farmers in Cowie Bay that separates Sebatik from municipality of Tawau. Indonesian in Desa Setabu, Sebatik started in 2008. However, the number of Indonesian seaweed farmers, their cultivated areas and production (as well as quality) in Sebatik increased many times higher and faster than the Sabah side of Sebatik. In 2009 more than 1,401 households in Kabupaten Nunukan (including Sebatik) cultivated over 700 ha and have produced 55,098.95 and 116, 73 m.t dried seaweed in 2010 and 2011 respectively. There is a divergence in productions from farming the sea off the same island under similar weather conditions. Which of the eight explanatory factors were affecting production of seaweeds in Sebatik? Using Cobb Douglas production function, Multiple Regression analysis was conducted on 100 samples (50 Sabahan and 50 Indonesian). Results; Variable significant at α = 0.05% are Experience in farming whereas Farm size; Quantity of propagules and Location — Dummy are the variables significant at α 0.01%. Not significant are variables Fuel; Age; Number of family members involved in farming and Education level.

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ANALISIS HARGA POKOK PENJUALAN DAN FAKTOR-FAKTOR YANG MEMPENGARUHI PRODUKSI USAHATANI UBI KAYU DI KABUPATEN LAMPUNG TENGAH

Jurnal Ilmu-Ilmu Agribisnis ◽

10.23960/jiia.v9i1.4962 ◽

2021 ◽

Vol 9 (2) ◽

pp. 107

Author(s):

Rohayani Rohayani ◽

Raden Hanung Ismono ◽

Rabiatul Adawiyah

Keyword(s):

Technical Efficiency ◽

Production Function ◽

Production Cost ◽

Profit Margin ◽

Average Price ◽

Total Income ◽

Standard Cost ◽

Significant Difference ◽

Cassava Production ◽

Douglas Production Function

The objectives of this research are to find out the selling standard cost of cassava production and the factors that influence the production of cassava farming. The research was a survey conducted in Central Lampung Regency in October-November 2018. The samples are 73 cassava farmers selected randomly. Data were analyzed using total income, total costs, profit margin, and Cobb-Douglas production function. The results showed that selling standard cost with profit margin of 13 percent is IDR1,145.81 in Terusan Nunyai Subsdistrict and IDR1,032.59 in Bandar Mataram Subsdistrict. The average price received by farmers is IDR1,456.57 and IDR1,570.65 respectively. It means that farmers have benefit from technical efficiency of cassava farming. There is a significant difference between the selling cost of cassava in area close to factory and that in farther area. The factors that affect the production of cassava are seeds, urea fertilizer, and location.Key words: Cassava, determining production cost, determining selling cost, farming.

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Efisiensi Teknis Bank Pembangunan Daerah di Indonesia Periode Tahun 2009 sampai dengan 2011

Jurnal Ilmu Manajemen & Ekonomika ◽

10.35384/jime.v6i2.136 ◽

2019 ◽

Vol 6 (2) ◽

pp. 84

Author(s):

Atman Poerwokoesoemo

Keyword(s):

Continuous Function ◽

Rural Development ◽

Technical Efficiency ◽

Production Function ◽

Efficient Production ◽

Development Bank ◽

Output Variable ◽

Douglas Production Function

The purpose of this research is to measure the technical efficiency of the 26 Rural Development Bank in Indonesia for 2009 to 2011 based on Farrel’s method and implementing the assumption of the efficient production continuous function to take the form of Cobb-Douglas production function. Technical efficiency measured involving two input variable; Capital and Total Employee and one output variable Loan. The result of this research shows that the Cobb-Douglass parameter  = 0.683 dan  = 0.317. Among the 26 Rural Development Bank shows that 2 banks consistently maintain its technical efficiency level in the range of 80 to 100%, 2 banks maintains its technical efficiency level in the range between 60 to 80%, 13 banks lays below 60% and the remaining 9 banks are moved up and down along the three years period.

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Analysis of the Cobb-Douglas Production Function as a Tool to Investigate the Impact of FDI Net Inflows on Gross Domestic Product Value in Poland in the Period 1994–2012

Oeconomia Copernicana ◽

10.12775/oec.2014.032 ◽

2014 ◽

Vol 5 (4) ◽

pp. 169-190 ◽

Cited By ~ 3

Author(s):

Aneta Kosztowniak

Keyword(s):

Economic Growth ◽

Gross Domestic Product ◽

Production Function ◽

Point Of View ◽

Foreign Direct Investments ◽

Fdi Inflows ◽

Fixed Capital Formation ◽

Empirical Point ◽

The Impact ◽

Douglas Production Function

The purpose of this paper is to analyse the impact of foreign direct investments net inflows on changes in GDP value in Poland in the period between 1994 and 2012 with the use of the Cobb-Douglas production function. The paper consist of five parts. Parts I and II present some aspects of the FDI influence on economic growth from the theoretical and empirical point of view. Part III defines conditions indispensable for the positive FDI impact on the economy of the host country. Part IV outlines changes of FDI flows in Poland in the period of 1994-2012. Part V includes the main assumptions of the Cobb-Douglas production function and an estimate of changes in GDP value for Poland in the period 1994–2012 with the use of the VECM. The factors significant for economic growth are also identified, including the significance of the net FDI inflows. Eventually, the effect of gross fixed capital formation, employment, FDI net inflows, exports and R&D on changes in the GDP value are determined.

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Analysis of Factors Affecting the Technical Efficiency of Rice Farming in East Java Province

Jurnal Ekonomi Pembangunan ◽

10.22219/jep.v18i2.12808 ◽

2020 ◽

Vol 18 (2) ◽

pp. 123

Author(s):

Rachman Hakim ◽

Tri Haryanto ◽

Dyah Wulan Sari

Keyword(s):

Technical Efficiency ◽

Production Function ◽

National Income ◽

Agricultural Extension ◽

Rice Farming ◽

Frontier Analysis ◽

Average Efficiency ◽

Education Access ◽

Access To Credit ◽

Douglas Production Function

Agriculture is a dominant sector in Indonesia, mostly because many people work in this sector, especially in agricultural centers such as East Java Province. However, it is ironic that the farm sector does not have a considerable contribution to Indonesia's national income. This study aimed to measure rice farming's efficiency in East Java and determine whether education, access to credit, farmer group membership, age, and agricultural extension affected rice farming efficiency. The data source comes from the Central Statistics Agency (Agricultural Business Household Income Survey) in 2013 for East Java Province. The number of samples used was 8603 farmer households. The research method uses Stochastic Frontier Analysis. The results showed that the average efficiency for the Cobb-Douglas production function was 0.764, while the average efficiency for the translog production function was 0.759. The Cobb-Douglas production function is not suitable for this study; the translog production function is considered more appropriate. The variables of education, access to credit, membership of farmer groups, age, and agricultural extension significantly influence rice farming's technical efficiency in East Java. The extension variable has the most significant effect.

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Analysis of technical efficiency among rice farmers in Ebonyi State of Nigeria: A stochastic frontier approach

Journal of Agriculture and Food Sciences ◽

10.4314/jafs.v18i1.4 ◽

2020 ◽

Vol 18 (1) ◽

pp. 40-49

Author(s):

C. Chikezie ◽

G.N. Benchendo ◽

O.B. Ibeagwa ◽

I.O. Oshaji ◽

O.A. Onuzulu

Keyword(s):

Technical Efficiency ◽

Production Function ◽

Sample Selection ◽

Stochastic Frontier ◽

Sampling Technique ◽

Farm Size ◽

Rice Varieties ◽

Rice Farmers ◽

Extension System ◽

Douglas Production Function

This paper analysed the technical efficiency of rice farmers in Ebonyi State, Nigeria. It specifically analysed the levels and determinants of technical efficiency. A multistage sampling technique was adopted for sample selection. A total of 150 well-structured questionnaires were distributed but only 91 were returned. The Cobb-Douglas production function model was used to predict the farm level technical efficiency. Results from the Cobb- Douglas Regression showed a sigma square (σ2) of 0.06584 which was statistically significant at 1 percent. The technical efficiency scores among the rice farmers ranged from 0.012 to 1.000 with a mean of 0.350. Farm size, quantity of rice seedlings, quantity of fertilizer and quantity of agrochemical all were showed positive correlation with coefficients of 0.93511, 0.08310, 0.11200 and 0.14345 respectively while farm labour showed a negative correlation with technical efficiency. The determinants of technical inefficiency were age, household size and extension visits. This paper advocates the strengthening of existing extension system for timely sourcing of highly improved rice varieties and subsidized fertilizer. There is the need to enhance farmers’ technical efficiency through adequate training on optimum input mix. Keywords: Rice production, technical efficiency, cobb-douglas production function

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DETERMINANTS AND TECHNICAL EFFICIENCY OF MAIZE PRODUCTION IN MUNA DISTRICT OF SOUTHEAST SULAWESI

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v8.i3.2020.143 ◽

2020 ◽

Vol 8 (3) ◽

pp. 201-206

Author(s):

Laode Geo

Keyword(s):

Technical Efficiency ◽

Production Function ◽

Stochastic Frontier ◽

Secondary Data ◽

Maize Production ◽

Factors Affecting ◽

Land Size ◽

Random Method ◽

Douglas Production Function

This study aimed to assess (1) factors affecting the production of maize farming and (2) the technical efficiency of maize farming. The study was conducted at Bone Kacintala subdistrict, Muna district, Southeast Sulawesi. The study location was selected purposively as it was production center of maize farming. Respondents consisted of 32 farmers who were taken using simple random method. The data consisted of primary and secondary data. The data were analyzed using Cobb-Douglas production function and Stochastic Frontier. The results showed that the level of technical efficiency of maize farming was 0.72 on average, which was efficient and there was still an opportunity of 28 percent to increase the technical efficiency. Land size, seed and fertilizer had positive and significant effect on maize production.

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Impacts of Seaport Investment on the Economic Growth

PROMET - Traffic&Transportation ◽

10.7307/ptt.v28i4.1933 ◽

2016 ◽

Vol 28 (4) ◽

pp. 365-370 ◽

Cited By ~ 5

Author(s):

Tahar Ammar Jouili ◽

Mohamed Anis Allouche

Keyword(s):

Economic Growth ◽

Production Function ◽

Growth Rates ◽

Econometric Model ◽

Public Investment ◽

Economic Sectors ◽

The Public ◽

Economic Growth Rates ◽

The Impact ◽

Douglas Production Function

The aim of this paper is to estimate the impact of seaports investment on the economic growth. Seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments have been allocating a great amount of money to develop seaport infrastructures. However, the Tunisian economy witnessed fluctuations in the economic growth rates and decrease in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample was composed of Tunisia's economic sectors (manufacturing, services and agriculture) over the period 1983-2011. The results of the study show that the public investment in seaport infrastructures has apositive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaport investment infrastructure is the service sector. This paper aims to estimate the impact of seaports investment on the economic growth. The seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments were allocating a great amount of money to develop seaports' infrastructures. However, the Tunisian economy witnessed fluctuating in the economic growth rates and decreased in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample composed of Tunisia's economic sectors (manufacturing, services and agriculture) over the period 1983-2011. The results of the study show that the public investment in seaports' infrastructures has a positive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaports investment infrastructure is the services sector.

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