Abstract

The Textile Industry and Product (TPT) are one of industry which has export orient and has market target or has huge role in creating PDB of non oil and natural gas manufacture industry. The main aspect to solve the work of TPT industry sector those are the efficiency, high productivity, and the technology progress. This study counts the growth of Total Factor Productivity (TFP) in industry of TPT in Indonesia at the year 2005 to 2009 by using panel data firm level. The growth count of TFP used method of Stochastic Analysis Frontier (SFA) with 2 models those are Cobb Douglas and Translog’s model. The development of TFP is decomposed within 3 components those are technical eficiency change, technical change, and scale efficiency change. The average growth rate of TFP in industry of TPT in Indonesia is as 2%. The major establishment componen of growth formation of TFP is technical change, in which the average rate is over 1%, while the average technical eficiency change is as 1%. It shows that the efficiency is stable or it does not change from time to time and for the average rate scale efficiency change is very tinny, it is under 1%. The influence of wage to the growth of TFP is very tinny; besides, the foreign property influences the growth of TFP in industry of TPT in Indonesia.

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