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Analysis Of Sectoral Efficiency And The Response Of Regional Policy

Author

Listed:
  • M. Abdul Majid Ikram

    (Bank Indonesia)

  • Andry Prasmuko

    (Bank Indonesia)

  • Donni Fajar Anugerah

    (Bank Indonesia)

  • Ina Nurmalia Kurniati

    (Bank Indonesia)

Abstract

This paper analyzes the contribution of capital and labor on sectoral performance in Indonesia. Using stochastic frontier production function, this paper found the aggregate share of capital and labor is 0.20 and 0.34 respectively; representing the dominance of labor. The highest three technical efficiency is Mining sector (88.65%), Manufacture (70.47%) and Financial (65.93%), while the lowest one is Electric, Gas and Water (25.38%).

Suggested Citation

  • M. Abdul Majid Ikram & Andry Prasmuko & Donni Fajar Anugerah & Ina Nurmalia Kurniati, 2012. "Analysis Of Sectoral Efficiency And The Response Of Regional Policy," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 14(3), pages 299-318, January.
    • Handle: RePEc:idn:journl:v:14:y:2012:i:3h:p:299-318
    DOI: https://doi.org/10.21098/bemp.v14i3.406
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    More about this item

    Keywords

    Efficiency; Stochastic Frontier; Productivity; Indonesia;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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