Technical Efficiency of Shallot Farming in Central Java Province: Stochastic Frontier Modelling

Linda Tri Wira Astuti, Arief Daryanto, Yusman Syaukat, Heny Kuswanti Daryanto

Abstract


Abstract: Shallot is an important high-value agricultural product (HVAP) produced by small farmers, that is consumed daily by most Indonesian people. In Indonesia, shallot experiences big price fluctuation and includes as the commodity that contributes to the inflation rate. In order to deal with the issue of big price fluctuation, farmers should supply shallot continuously for the whole year. From the production side, technical efficiency is an important factor to maintain shallot production in Indonesia. Previous literature paid little attention to the technical efficiency of shallot farming in Indonesia. This paper aims to examine and compare the technical efficiency of shallot production in different seasons by using Stochastic Frontier Analysis. The data comes from a structured survey of 380 shallot households in Brebes, Central Java in 2016. Results from this study will inform the technical efficiency of shallot farming in Indonesia in 2016. This can be useful for the government to formulate strategies in maintaining and even improving shallot production to reduce the big price fluctuation of shallot in Indonesia.

Keywords


Stochastic Frontier Analysis, Cobb Douglas, Production Function, Technical Efficiency, Shallot

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DOI: http://dx.doi.org/10.52155/ijpsat.v13.2.800

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