Technical efficiency on Indonesian maize production: frontier stochastic analysis (sfa) and data Envelopment analysis (DEA) approach

Asmara R., Hanani N., Syafrial S. and Mustadjab M.M.
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Asmara R.: Faculty of Agriculture, University of Brawijaya
Hanani N.: Faculty of Agriculture, University of Brawijaya
Syafrial S.: Faculty of Agriculture, University of Brawijaya
Mustadjab M.M.: Faculty of Agriculture, University of Brawijaya

Russian Journal of Agricultural and Socio-Economic Sciences, 2016, vol. 58, issue 10, 24-29

Abstract: In order to achieve maize self-sufficiency in Indonesia, efficiency ought to be increased. Therefore, this study is aimed to assess technical efficiency of wide range of farmers. It is done in order to formulate a policy to increase the productivity of maize. The study was conducted in regions that produce maize. Sample farmers were determined to be non-proportionate stratified random sampling by land class strata, namely wetland and dry land. Analysis methods utilized in this research are Data Envelopment Analysis (DEA) and Analysis Frontier Stochastic (SFA). As for assessment of factors affecting technical efficiency analysis, Tobit regression models is utilized. The results of this research exhibits that the technical efficiency (TE) utilizing SFA approach gained an average of 0.78. On the other hand, the DEA approach obtained an average of 0.9. SFA approach exhibits lower TE value and evenly distributed among farmers compared to DEA approach, where no value is less than 0.6. Factors affecting TE are education, land ownership, extension frequency, and demonstration plot. Based on DEA approach also obtained the fact that most farmers are on the conditions of increasing returns to scale.

Keywords: TECHNICAL EFFICIENCY; MAIZE; DATA ENVELOPMENT ANALYSIS; STOCHASTIC FRONTIER ANALYSIS (search for similar items in EconPapers)
Date: 2016
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