Technical Efficiency and Technology Gap in Indonesian Rice Farming
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This study aims to estimate the technical efficiency and technology gap in Indonesian rice farming,
and analyze its determinants. An analysis of DEA Metafrontier and Tobit regression was applied respectively
for the first and second objective. The data is based on farm level data of fifteen rice–producing provinces
in Indonesia. The result showed that the technical efficiency based on metafrontier estimation is slightly lower
than the technical efficiency based on regional frontier estimation, indicating the existence of technology gap
which is quite small. Net income, education, and irrigated rice field found related to the technical efficiency
and technology gap. Meanwhile, the effect of other factors on the technical efficiency and technology gap is
ambiguous. Hence, this study suggests that these three factors should be considered in the policy to increase
technical efficiency and to reduce the technology gap in Indonesian rice farming