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Decomposition total factor productivity of Indonesian rice production

Author

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  • Joko Mariyono

    (Program Studi Magister Manajemen, Universitas Pancasakti, Tegal, Indonesia)

Abstract

Rice is still a staple food for the people of Indonesia. If Indonesia relies on imported rice, it will be very politically vulnerable if there is a shortage of rice supply in the international market. Therefore, the productivity of rice farming should be kept rising in line with the rate of population increase. This paper analyzes the growth of total factor productivity of paddy farming efforts. Total productivity is decomposed into four parts: the advancement of technology, technical efficiency, allocative efficiency and the effect of business scale. If each component of productivity growth is known, it will be determined strategies to increase rice production. Data analysis using secondary data published by the Indonsian Statistics Agency (BPS). Analyses were performed using an econometric approach. The results show that growth in total factor productivity declined with the slowdown. Positive contributor to the growth of total factor productivity is the change in the technical and business scale effects; whereas negative contributor is the technical and allocative efficiency. Growth in rice production is because of growth in the use of inputs and other factors such as the expansion and increase in cropping index. The growth in total factor productivity can be increased by improving technical and allocative efficiencies.

Suggested Citation

  • Joko Mariyono, 2018. "Decomposition total factor productivity of Indonesian rice production," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 121-127, Oktober.
    • Handle: RePEc:uii:journl:v:10:y:2018:i:2:p:121-127
    DOI: 10.20885/ejem.vol10.iss2.art1
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    References listed on IDEAS

    as
    1. Joko Mariyono, 2014. "Dead weight loss associated with economic efficiency use of esticides in Indonesian rice production," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 69-84.
    2. Madhusudan Bhattarai & Joko Mariyono, 2016. "The economic aspects of chilli production in Central Java," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(2), pages 85-97.
    3. Joko Mariyono, 2014. "Dead weight loss associated with economic efficiency use of pesticides in Indonesian rice production," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 69-84, April.
    4. Madhusudan Bhattarai & Joko Mariyono, 2016. "The economic aspects of chilli production in Central Java," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(2), pages 85-97, April.
    5. Kaliappa Kalirajan, 2004. "An analysis of India's reform dynamics," Oxford Development Studies, Taylor & Francis Journals, vol. 32(1), pages 119-134.
    6. Jesus Felipe & J. S. L. McCombie, 2003. "Some methodological problems with the neoclassical analysis of the East Asian miracle," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(5), pages 695-721, September.
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    Cited by:

    1. Zehua Li & Xiaola Wu & Xicheng Wang & Haimin Zhong & Jiongtao Chen & Xu Ma, 2022. "Measurement and Analysis of Contribution Rate for China Rice Input Factors via a Varying-Coefficient Production Function Model," Agriculture, MDPI, vol. 12(9), pages 1-19, September.

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    More about this item

    Keywords

    rice farming; econometric approach; total;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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