IDEAS home Printed from https://ideas.repec.org/a/ags/ajosrd/342392.html
   My bibliography  Save this article

Comparative advantages and factors affecting agriculture production and income in the food estate area on the Indonesia–Timor-Leste border

Author

Listed:
  • Taena, Werenfridus
  • Sipayung, Boanerges Putra
  • Blegur, Fried Allung
  • Klau, Anggelina Delviana

Abstract

The Indonesian government has created a food estate area in Belu Regency, supported by the construction of the Rotiklot Dam, in the expectation that it would increase agricultural production and income, as well as stimulate the economy of the border region. The study aims to analyze (i) the comparative advantage of agricultural commodities in the food estate area and (ii) the effect of social characteristics and physical inputs on increasing farmers’ production and income in the food estate area in the border region. The data used consisted of primary data obtained from interviews with 300 respondents, selected through purposive sampling from a population of 4500, and secondary data from related agencies. The data analysis employed location quotient (LQ) and the partial least squares approach to structural equation modeling (SEM-PLS). Social input was reflected by 5 variables and physical input by 3 variables, while production was reflected by 6 variables and income by 7 variables. The LQ results show that maize and rice production in the food estate area is superior to other areas, and maize grows faster than rice crops. The comparative advantage is due to physical and social factors; based on the results of SEM-PLS, physical factors have direct and indirect effects on production and income, while social factors have an indirect effect on farmers' income through agricultural production. Expansion of the planting area by utilizing water from the Rotiklot Dam and increasing the motivation of farmers through input subsidies are needed to optimize the increase in farmers' production and income.

Suggested Citation

  • Taena, Werenfridus & Sipayung, Boanerges Putra & Blegur, Fried Allung & Klau, Anggelina Delviana, 2023. "Comparative advantages and factors affecting agriculture production and income in the food estate area on the Indonesia–Timor-Leste border," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 13(01), January.
    • Handle: RePEc:ags:ajosrd:342392
    DOI: 10.22004/ag.econ.342392
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/342392/files/Comparative%20advantages%20and%20factors%20affecting%20agriculture%20production.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.342392?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shalabh, 2022. "Probability, statistics, and data: a fresh approach using R," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(S2), pages 776-777, December.
    2. Tao Chen & Muhammad Rizwan & Azhar Abbas, 2022. "Exploring the Role of Agricultural Services in Production Efficiency in Chinese Agriculture: A Case of the Socialized Agricultural Service System," Land, MDPI, vol. 11(3), pages 1-18, February.
    3. Zhang-Nan Hu & Wen-Chiao Cheng & Bing Li, 2022. "On The Hitting Probabilities Of Limsup Random Fractals," FRACTALS (fractals), World Scientific Publishing Co. Pte. Ltd., vol. 30(03), pages 1-9, May.
    4. Furqan Sikandar & Vasilii Erokhin & Hongshu Wang & Shafiqur Rehman & Anna Ivolga, 2021. "The Impact of Foreign Capital Inflows on Agriculture Development and Poverty Reduction: Panel Data Analysis for Developing Countries," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    5. Pham Thanh Vu & Vo Quang Minh & Phan Chi Nguyen & Tran Van Dung & Nguyen The Cuong & Ngo Thi Phong Lan, 2020. "Estimating the criteria affected to agricultural production: case of Chau Thanh A district, Vietnam," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 10(1), pages 463-472, June.
    6. Pham Thanh Vu & Vo Quang Minh & Phan Chi Nguyen & Tran Van Dung & Nguyen The Cuong & Nguyen Thi Phong Lan, 2020. "Estimating the Criteria Affected to Agricultural Production: Case of Chau Thanh a District, Vietnam," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 10(1), pages 463-472.
    7. Leili Soltanisehat & Reza Alizadeh & Nader Mehregan, 2019. "Research and Development Investment and Productivity Growth in Firms with Different Levels of Technology," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 23(4), pages 795-818, Autumn.
    8. Elzbieta Jadwiga Szymanska & Mariusz Dziwulski, 2021. "The Impact of Fixed Asset Investments on the Productivity of Production Factors in Agriculture," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 382-394.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phan Chi Nguyen & Pham Thanh Vu & Nguyen Quoc Khuong & Huynh Vuong Thu Minh & Huynh Anh Vo, 2024. "Saltwater Intrusion and Agricultural Land Use Change in Nga Nam, Soc Trang, Vietnam," Resources, MDPI, vol. 13(2), pages 1-19, January.
    2. Wenhao Song & Chunhui Ye, 2022. "Impact of the Cultivated-Land-Management Scale on Fertilizer Reduction—Empirical Evidence from the Countryside of China," Land, MDPI, vol. 11(8), pages 1-15, July.
    3. Li, Xianmei & Yu, Guoxin & Wen, Liping & Liu, Guoyong, 2023. "Research on the effect of agricultural science and technology service supply from the perspective of farmers' differentiation," Innovation and Green Development, Elsevier, vol. 2(3).
    4. Heng Zhang & Xiuguang Bai & Mao Zhao, 2024. "How Socialized Services Affect Agricultural Economic Resilience—Empirical Evidence from China," Agriculture, MDPI, vol. 14(10), pages 1-19, October.
    5. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    6. Furqan Sikandar & Vasilii Erokhin & Li Xin & Marina Sidorova & Anna Ivolga & Alexey Bobryshev, 2022. "Sustainable Agriculture and Rural Poverty Eradication in Pakistan: The Role of Foreign Aid and Government Policies," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    7. Mingming Li & Marko Milojevic & Dmitry Gura, 2024. "Development of methodology for evaluating sustainable rural development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21237-21257, August.
    8. Yaoyao Wang & Yuanpei Kuang, 2023. "Evaluation, Regional Disparities and Driving Mechanisms of High-Quality Agricultural Development in China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    9. Lewei Chen & Zongyi Zhang & Hongbo Li & Xinpu Zhang, 2023. "Maintenance Skill Training Gives Agricultural Socialized Service Providers More Advantages," Agriculture, MDPI, vol. 13(1), pages 1-17, January.
    10. Xiaoxuan Chen & Tongshan Liu, 2023. "Can Agricultural Socialized Services Promote the Reduction in Chemical Fertilizer? Analysis Based on the Moderating Effect of Farm Size," IJERPH, MDPI, vol. 20(3), pages 1-16, January.
    11. Liang Li & Ying Xiang & Xinyue Fan & Qinxiang Wang & Yang Wei, 2023. "Spatiotemporal Characteristics of Agricultural Production Efficiency in Sichuan Province from the Perspective of “Water–Land–Energy–Carbon” Coupling," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    12. Jie Lv & Lu Huang & Xiaoting Li, 2022. "Does the Creation of Food Safety Demonstration Cities Promote Agricultural Development? Evidence from China," IJERPH, MDPI, vol. 19(24), pages 1-18, December.
    13. Changjun Zheng & Sinamenye Jean-Petit, 2023. "The Effects of the Interactions Between Agro-Production, Economic, and Financial Development on Bank Sustainability," SAGE Open, , vol. 13(2), pages 21582440231, June.
    14. Liu, Yan & Heerink, Nico & Li, Fan & Shi, Xiaoping, 2022. "Do agricultural machinery services promote village farmland rental markets? Theory and evidence from a case study in the North China plain," Land Use Policy, Elsevier, vol. 122(C).
    15. Qi Li & Menghui Gao, 2023. "Trust evolution, institutional constraints, and land trusteeship decisions among Chinese farmers," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(12), pages 485-497.
    16. Alizadeh, Reza & Soltanisehat, Leili & Lund, Peter D. & Zamanisabzi, Hamed, 2020. "Improving renewable energy policy planning and decision-making through a hybrid MCDM method," Energy Policy, Elsevier, vol. 137(C).
    17. Juan Ai & Lun Hu & Shuhua Xia & Hongling Xiang & Zhaojiu Chen, 2023. "Analysis of Factors Influencing the Adoption Behavior of Agricultural Productive Services Based on Logistic—ISM Model: A Case Study of Rice Farmers in Jiangxi Province, China," Agriculture, MDPI, vol. 13(1), pages 1-16, January.
    18. Jiquan Peng & Zihao Zhao & Lili Chen, 2022. "The Impact of High-Standard Farmland Construction Policy on Rural Poverty in China," Land, MDPI, vol. 11(9), pages 1-20, September.
    19. Ali M. H. A. Khajah & Simon P. Philbin, 2022. "Techno-Economic Analysis and Modelling of the Feasibility of Wind Energy in Kuwait," Clean Technol., MDPI, vol. 4(1), pages 1-21, January.
    20. Vasilii Erokhin & Li Diao & Tianming Gao & Jean-Vasile Andrei & Anna Ivolga & Yuhang Zong, 2021. "The Supply of Calories, Proteins, and Fats in Low-Income Countries: A Four-Decade Retrospective Study," IJERPH, MDPI, vol. 18(14), pages 1-30, July.

    More about this item

    Keywords

    Agricultural Finance; Production Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajosrd:342392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesstea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.