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

<p>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 exp...

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Main Authors: Kuswanto Kuswanto, Zulkifli Alamsyah, Armandelis Armandelis, Zulfanetty Zulfanetty
Format: Article
Language:English
Published: EconJournals 2019-03-01
Series:International Journal of Economics and Financial Issues
Online Access:https://www.econjournals.com/index.php/ijefi/article/view/7503
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author Kuswanto Kuswanto
Zulkifli Alamsyah
Armandelis Armandelis
Zulfanetty Zulfanetty
author_facet Kuswanto Kuswanto
Zulkifli Alamsyah
Armandelis Armandelis
Zulfanetty Zulfanetty
author_sort Kuswanto Kuswanto
collection DOAJ
description <p>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 percent and increasing the farming experience by 5 percent can increase the FHIR of 1.33.</p><p><strong>Keywords:</strong> household welfare, rubber farmers, technical efficiency of rubber production</p><p><strong>JEL Classifications:</strong> Q12, Q13</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.7503">https://doi.org/10.32479/ijefi.7503</a></p>
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spelling doaj.art-0515a8225d7d4e079147cb82151b500f2023-02-15T16:16:02ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382019-03-019280863753The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi ProvinceKuswanto Kuswanto0Zulkifli AlamsyahArmandelis ArmandelisZulfanetty ZulfanettyJambi University<p>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 percent and increasing the farming experience by 5 percent can increase the FHIR of 1.33.</p><p><strong>Keywords:</strong> household welfare, rubber farmers, technical efficiency of rubber production</p><p><strong>JEL Classifications:</strong> Q12, Q13</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.7503">https://doi.org/10.32479/ijefi.7503</a></p>https://www.econjournals.com/index.php/ijefi/article/view/7503
spellingShingle Kuswanto Kuswanto
Zulkifli Alamsyah
Armandelis Armandelis
Zulfanetty Zulfanetty
The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
International Journal of Economics and Financial Issues
title The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
title_full The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
title_fullStr The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
title_full_unstemmed The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
title_short The Impact of the Efficiency of Rubber Production on the Welfare of Rubber Farmers in Jambi Province
title_sort impact of the efficiency of rubber production on the welfare of rubber farmers in jambi province
url https://www.econjournals.com/index.php/ijefi/article/view/7503
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