Technical efficiency with stochastic production function frontier of seaweed farming in Pantai Amal, Tarakan City

Abstract

Efficiency in production is very important to produce optimal production. An important factor in carrying out production efficiency is the use of inputs or production factors so as to produce optimal output. This is often called technical efficiency. The sampling technique was carried out using a non-probability sampling method, while the method or technique used is purposive sampling, with certain considerations, namely: seaweed farmers who have been farming for at least 1 year, the farmer’s age is at least 17 years. The number of samples was carried out by quota as many as 60 seaweed farmers. Methods of data analysis Technical efficiency is analyzed using the stochastic frontier production function, in this case the form of the production function is the Cobb Douglass production function. The results showed (1) the factors that affect the technical efficiency of seaweeds are land area, amount of seeds, labor force, age, education, and farming experience. (2) The average level of technical efficiency of seaweed farmers in Tarakan City in general is 0.974 (efficient). The factor that can reduced technical inefficiency was education. education has a negative relationship and was significant in increasing technical efficiency.