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IJSTR >> Volume 8 - Issue 1, January 2019 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Does Tapioca Production In Pati Regency Efficient?

[Full Text]

 

AUTHOR(S)

Triana Dwi Wahyuni, Sasongko, Sri Muljaningsih

 

KEYWORDS

Tapioca, Efficiency, DEA, Cobb-Douglass production function

 

ABSTRACT

This study aims to measure the level of technical efficiency in Tapioca Small and Medium Enterprises and the factors that affect tapioca production in Pati Regency, Central Java Province, Indonesia. The research method used is DEA (Data Envelopment Analysis) analysis with the assumption that output is oriented and the Variable Return to Scale (VRS) approach is used to measure the efficiency level of tapioca companies. Furthermore, by analyzing Ordinary Least Squares (OLS) to determine the factors that influence tapioca production. The results showed that the level of technical efficiency of tapioca production in Pati Regency was quite high, the average technical efficiency was 0.914. 35 of the 80 samples of tapioca entrepreneurs are still below the average. This study also presents the efficiency level of tapioca entrepreneurs on a low, medium and large scale business. Whereas with OLS analysis, it was found that raw material variables and plant area had a significant positive effect on tapioca production, labor and milling machine capacity did not significantly influence tapioca production.

 

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