PRODUCTION EFFICIENCY OF SMALL-SCALE SHALLOT PRODUCERS IN EAST JAVA, INDONESIA

. Sujarwo, Michael Reed and Sayed Saghaian
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. Sujarwo: Department of Agricultural Economics and Agribusiness, University of Brawijaya, Malang, Indonesia.
Michael Reed: Department of Agricultural Economics, University of Kentucky, USA.
Sayed Saghaian: Department of Agricultural Economics, University of Kentucky, USA.

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Abstract: This study attempts to find ways for small-scale farmers to increase efficiency with their current technology for shallots. The efficiency measurements rely on a double-log production function, which is estimated by Principal Component Regression (PCR) to remove multicollinearity from the model. The results confirm that small-scale shallot farmers have difficulty in allocating their inputs efficiently. Land, seed, and labor are over-utilized; while fertilizer and pesticide are under-utilized. Small-scale shallot farmers have estimated gross profit losses of 32% due to inefficient allocation of inputs.

Date: 2015-03-08
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Published in Journal of Global Economics, Management and Business Research, 2015, 2 (2), pp.59-71

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05366607

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