TECHNICAL EFFICIENCY OF TRADITIONAL MEDICINE RAW MATERIAL INDUSTRY IN INDONESIA (SIMILARITY)

Indri, Ivana and Suhel, Suhel and Mukhlis, Mukhlis (2022) TECHNICAL EFFICIENCY OF TRADITIONAL MEDICINE RAW MATERIAL INDUSTRY IN INDONESIA (SIMILARITY). Eurasia: Economics & Business.

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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:	Other
Uncontrolled Keywords:	Stochastic Frontier Approach (SFA), Cobb-Douglas, production theory, technical efficiency, industrialization.
Subjects:	#3 Repository of Lecturer Academic Credit Systems (TPAK) > Results of Ithenticate Plagiarism and Similarity Checker
Divisions:	01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User:	Dr Suhel Suhel
Date Deposited:	27 Apr 2023 06:43
Last Modified:	27 Apr 2023 06:43
URI:	http://repository.unsri.ac.id/id/eprint/97419

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