Insani, Ivana Indri and Suhel, Suhel and Mukhlis, Mukhlis (2023) TECHNICAL EFFICIENCY OF TRADITIONAL MEDICINE RAW MATERIAL INDUSTRY IN INDONESIA. econeurasia, 12 (66). pp. 76-81. ISSN 2522-9710
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Abstract
Indonesia has a variety of plants that function as medicines potentially improving the economy through the part of the herbal plantation sector which is used as an industrial traditional medicine. In this study, researchers calculate the level of efficiency of the traditional medicine raw material industry in Indonesia (ISIC 21021) in the period 2000-2019. The stochastic frontier approach (SFA) model is based on the Cobb-Douglas production theory including production, capital, raw materials, and labor to see industrial efficiency. This research shows that the average of efficiency is 0.994731809 from the frontier or maximum production. The capital variable has a negative and significant effect on the output produced by producers in the industry, while the labor variable has a positive and significant effect on the output produced. Raw materials also have a significant effect on the output for this Industry in Indonesia.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Stochastic Frontier Approach (SFA), Cobb-Douglas, production theory, technical efficiency, industrialization |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD72-88 Economic growth, development, planning T Technology > T Technology (General) > T57.6-57.97 Operations research. Systems analysis > T57.65 Stochastic processes Programming T Technology > T Technology (General) > T57.6-57.97 Operations research. Systems analysis > T57.79 Stochastic programming Nonlinear programming T Technology > TX Home economics > TX1-1110 Home economics |
| Divisions: | 01-Faculty of Economics > 60101-Economics (S2) |
| Depositing User: | Ivana Indri Insani |
| Date Deposited: | 24 Jan 2023 04:09 |
| Last Modified: | 24 Jan 2023 04:09 |
| URI: | http://repository.unsri.ac.id/id/eprint/86009 |
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