ECONOMIES OF SCALE AND ALLOCATIVE EFFICIENCY OF RICE FARMING AT WEST SERAM REGENCY, MALUKU PROVINCE, INDONESIA
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 5
Abstract
Economies of scale and allocative efficiency of rice farming has been conducted in technical irrigated field at Kabupaten Seram Bagian Barat – SBB (West Seram Regency), Province of Maluku. This study has the objectives to analyze production factors that affecting production and farming scale level, also technical efficiency and input utilization allocation in rice farming at West Seram Regency, by using linear regression from Cobb-Douglas production function. Result of this study showed that there were three independent variables that has significant effect toward production (Y), that is labor bulk (X6), urea fertilizer (X2) and NPK Pelangi fertilizer (X3) with consecutive elasticity 0,55; 0,19 and 0,11 which means that technical efficiency of this farming has been achieved. Value in return to scale (RTS) with 0,88 showed that increase rate for rice farming at West Seram Regency tend to decrease or decreasing return to scale (DRS), but still within rational production area. Result in allocative efficiency test toward farming input showed ratio MVPxi/Pxi>1, which means allocative efficiency of this farming still not achieved.
Authors and Affiliations
Ismatul Hidayah| Assessment Institute for Agricultural Technology of Maluku, Indonesian Agency for Agricultural Research and Development, Andriko Noto Susanto| Assessment Institute for Agricultural Technology of Maluku, Indonesian Agency for Agricultural Research and Development
Keywords
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