Analysis of the Efficiency of Using Production Factors at Corn Farming in Kupang Regency, Indonesia
- January 27, 2021
- Posted by: RSIS Team
- Categories: Business Administration, IJRSI
International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue I, January 2021 | ISSN 2321–2705
Analysis of the Efficiency of Using Production Factors at Corn Farming in Kupang Regency, Indonesia
Lukas J.B.B. Hattu, Elly Lay, Johanes Sarong, Erna Giri
Department of Business Administration University of Nusa Cendana Kupang
Abstract:- This study aims to analyze and determine the efficiency of the use of production factors in corn farming in East Kupang District, Kupang Regency. By knowing whether or not the use of production factors is efficient, it can be recommended to farmers to increase or decrease the use of certain production factors, which in fact are based on the results of the analysis of their use is inefficient. The data analysis method used is by using the Cobb-Douglass production function, where the results of this analysis can be seen from the elasticity of the use of each production factor on the production results. Furthermore, determining the efficient use of a type of production factor is determined based on the amount of its Marginal Production Value (MPV).
This research took place in the East Kupang sub-district, because this area is one of the vegetable and maize-producing areas that supply the community’s needs for these commodities in Kupang district and also in Kupang City. The results showed that the production factors had a significant effect on production yields, but their use was still not efficient. Therefore, it needs to be further improved in order to achieve optimal efficiency.
Keywords: efficiency, elasticity, production factors.
Introduction
Agriculture is one of the main sectors that support people’s lives, because the agricultural sector is the livelihood of most of Indonesia’s population. Indonesia is an agricultural country. Departing from this, agriculture is one of the pillars of the national economy. This means that the agricultural sector plays an important role and should be the driving force of the country’s economic activities. Based on 2019 BPS data, the population working in the agricultural sector is around 41,309,776 people or 39.02 percent of the total productive age population, while the remaining 60.98 percent are spread across various sectors outside of agriculture[1].
