The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province

KUSWANTO, KUSWANTO and ALAMSYAH, ZULKIFLI and Armandelis, Armandelis and Zulfaneti, Zulfaneti (2019) The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province. International Journal of Economics and Financial Issues, 9 (2). pp. 80-86. ISSN 21464138

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Abstract

This study aims to analyse the level of technical efficiency of rubber production and its impact on the welfare of rubber farmers in Jambi Province. The research was conducted in central area of rubber plantation in Jambi Province, namely Batanghari, Sarolangun, Tebo and Muaro Jambi. To explain the determinants of productivity and to analyse the efficiency of rubber production and the factors that influence it, the Cobb-Douglas production function model using the stochastic frozen production function approach is used. Measuring the welfare of farmers using the farmers’ household income rate (FHIR) approach. The results showed that the average rubber farmers in the study area have not been efficient in allocating inputs and not yet prosperous production. Improving the technical efficiency of rubber production through increasing the number of young farmers up to 23% and increasing the farming experience by 5% can increase the FHIR of 1.33.

Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Fakultas Ekonomi dan Bisnis > Ekonomi Pembangunan
Depositing User: Alamsyah
Date Deposited: 19 Mar 2021 06:10
Last Modified: 19 Mar 2021 06:10
URI: https://repository.unja.ac.id/id/eprint/18311

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