Technical efficiency and technology gap in Indonesian rice farming

Research output: Contribution to journalArticle

Abstract

This study aims to estimate the technical efficiency and technology gap in Indonesian rice farming, and analyze its determinants. An analysis of DEA Metafrontier and Tobit regression was applied respectively for the first and second objective. The data is based on farm level data of fifteen rice-producing provinces in Indonesia. The result showed that the technical efficiency based on metafrontier estimation is slightly lower than the technical efficiency based on regional frontier estimation, indicating the existence of technology gap which is quite small. Net income, education, and irrigated rice field found related to the technical efficiency and technology gap. Meanwhile, the effect of other factors on the technical efficiency and technology gap is ambiguous. Hence, this study suggests that these three factors should be considered in the policy to increase technical efficiency and to reduce the technology gap in Indonesian rice farming.

Original languageEnglish
Pages (from-to)29-38
Number of pages10
JournalAgris On-line Papers in Economics and Informatics
Volume8
Issue number3
Publication statusPublished - 2016

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technical efficiency
Agriculture
rice
farming systems
Technology
efficiency
Indonesia
paddies
education
paddy field
income
Oryza
Technology gap
Technical efficiency
Farming
farm
Education
farms
determinants
regression

Keywords

  • DEA metafrontier
  • Rice farming
  • Technical efficiency
  • Technology gap
  • Tobit regression

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Agricultural and Biological Sciences (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)
  • Management, Monitoring, Policy and Law

Cite this

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abstract = "This study aims to estimate the technical efficiency and technology gap in Indonesian rice farming, and analyze its determinants. An analysis of DEA Metafrontier and Tobit regression was applied respectively for the first and second objective. The data is based on farm level data of fifteen rice-producing provinces in Indonesia. The result showed that the technical efficiency based on metafrontier estimation is slightly lower than the technical efficiency based on regional frontier estimation, indicating the existence of technology gap which is quite small. Net income, education, and irrigated rice field found related to the technical efficiency and technology gap. Meanwhile, the effect of other factors on the technical efficiency and technology gap is ambiguous. Hence, this study suggests that these three factors should be considered in the policy to increase technical efficiency and to reduce the technology gap in Indonesian rice farming.",
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AB - This study aims to estimate the technical efficiency and technology gap in Indonesian rice farming, and analyze its determinants. An analysis of DEA Metafrontier and Tobit regression was applied respectively for the first and second objective. The data is based on farm level data of fifteen rice-producing provinces in Indonesia. The result showed that the technical efficiency based on metafrontier estimation is slightly lower than the technical efficiency based on regional frontier estimation, indicating the existence of technology gap which is quite small. Net income, education, and irrigated rice field found related to the technical efficiency and technology gap. Meanwhile, the effect of other factors on the technical efficiency and technology gap is ambiguous. Hence, this study suggests that these three factors should be considered in the policy to increase technical efficiency and to reduce the technology gap in Indonesian rice farming.

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