Several factors that influence household economic decisions of rice farmers in Indonesia

Leki Silverius
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Leki Silverius: University of Nusa Cendana

Russian Journal of Agricultural and Socio-Economic Sciences, 2017, vol. 61, issue 1, 172-179

Abstract: The objective of this study is to point out the factors that influence household economic decisions in the use of labor, production, and consumption. This study was undertaken in Kupang regency, East Nusa Tenggara with 114 samples of agricultural household. A specification of household economic model used a simultaneous equations system. Parameter estimation uses two-stage least squares (2SLS) method. The results showed that the act of using labor in a household for rice farming was significant influenced by agricultural wage rate, rice product price, household income, farming area, and the number of household member. While the use of wage-labor was significant influenced by wage rate, farming area, and the use of household (domestic) labor. The use of urea and SP-36 was affected by ratio of rice price to fertilizer, and farming area. Rice production was influenced by farming area, total number of labor used, and amount of fertilizer used. Rice consumption from farming was positively significant influenced by an amount of rice production produced and the number of household member. Rice consumption from purchase was negatively influenced by the number of rice production but positively influenced by the number of household member.

Keywords: ECONOMETRIC MODEL; LABOR; PRODUCTION; CONSUMPTION; FARMER (search for similar items in EconPapers)
Date: 2017
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