This study applied the stochastic frontier approach (S FA) to estimate the level of technical efficiency and analyze determinants of technical inefficiency paddy farming in Java, Indonesia. The data of this study are based on the cost structure survey in rice farming conducted by the Central Statistical Bureau of the Republic of Indonesia in 2008. The study area consists of three rice producing provinces in Java, namely east Java, Central Java and West Java. The results showed that the average technical efficiency in East Java province is 0.851. Meanwhile, in Central Java and West Java are 0.836 and 0.805 respectively. Farmers' income has a negative and significant effect on technical inefficiency. On the other hand, the age of farmers, sources of financing and land size have a positive and significant effect on technical inefficiency. Further, the effect of other variables such as formal education, government assistance, drought and flood disasters caused by climate change on the technical inefficiency is varied both in terms of sign as well as the level of significance between the study area.
|Translated title of the contribution||Technical efficiency in Indonesian paddy farming: Study in Java Island|
|Number of pages||12|
|Journal||Jurnal Ekonomi Malaysia|
|Publication status||Published - 2016|
- Paddy farming
- Stochastic production function
- Technical efficiency