ANALYSIS OF SECTORAL EFFICIENCY AND THE RESPONSE OF REGIONAL POLICY

M. Abdul Majid Ikram (), Andry Prasmuko (), Donni Fajar Anugerah () and Ina Nurmalia Kurniati ()
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M. Abdul Majid Ikram: Bank Indonesia
Andry Prasmuko: Bank Indonesia
Donni Fajar Anugerah: Bank Indonesia
Ina Nurmalia Kurniati: Bank Indonesia

Bulletin of Monetary Economics and Banking, 2012, vol. 14, issue 3, 299-318

Abstract: This paper analyzes the contribution of capital and labor on sectoral performance in Indonesia. Using stochastic frontier production function, this paper found the aggregate share of capital and labor is 0.20 and 0.34 respectively; representing the dominance of labor. The highest three technical efficiency is Mining sector (88.65%), Manufacture (70.47%) and Financial (65.93%), while the lowest one is Electric, Gas and Water (25.38%).

Keywords: Efficiency; Stochastic Frontier; Productivity; Indonesia (search for similar items in EconPapers)
JEL-codes: D24 J24 O18 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:14:y:2012:i:3h:p:299-318

DOI: 10.21098/bemp.v14i3.406

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