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Pertumbuhan TFP dan Pengembangan Efisiensi Produksi

Author

Listed:
  • Endy Dwi Tjahjono

    (Bank Indonesia)

  • Donni Fajar Anugrah

    (Bank Indonesia)

Abstract

This paper investigates both the accumulation and the quality of the input factors with stochastic frontier production function model. The application of the model also enables us to predict the technical efficiency of the input factors for each province of Indonesia. The model result shows that the capital and the labor share to output are 0.4 and 0.6 respectively. In all Indonesia regions, the quality of the labor or human capital affects the output, but the effect is so small, especially in East Indonesia. Meanwhile, the quality of capital is decreasing by the time and has a negative small coefficient for all regions. The technical efficiency of all Indonesia regions has increased during the observation period. In the region side, the technical efficiency of the provinces in Sumatra has increased by the time, yet provinces in the other regions tend to decrease. Meanwhile, the technological progresses with no different among regions have a decreasing TFP trend.

Suggested Citation

  • Endy Dwi Tjahjono & Donni Fajar Anugrah, 2007. "Pertumbuhan TFP dan Pengembangan Efisiensi Produksi," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 10(2), pages 123-148, October.
    • Handle: RePEc:idn:journl:v:10:y:2007:i:2b:p:123-148
    DOI: https://doi.org/10.21098/bemp.v10i2.221
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    More about this item

    Keywords

    Production; Capital and TFP; Model Stochastic Frontier with Panel Data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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