Technical Efficiency of Indonesia’s Sugar Manufacturing Industry: Based on DEA-Bootstrap Approach
Abstract
This study aims to measure the technical efficiency of companies in the sugar industry in Indonesia and determine the factors that influence the technical efficiency scores of these companies. The data was used in the form of time series for 2010-2014 with observations of 340 companies. The Bootstrap data envelopment method with the assumption of a return to scale variables and input orientation is used to measure the company’s technical efficiency score. The results will be analyzed further as the dependent variable with Tobit regression for the technical efficiency determinant analysis stage. Based on the analysis results, the average score of the technical efficiency of the sugar industry is 0.67. Based on Tobit’s estimation, the location factor is significant to the technical efficiency score, while the export, import, company ownership, market concentration, and firm size are not significant
Keywords: Data Envelopment Analysis Bootstrap; Sugar Industry; Technical Efficiency, Tobit Regression
JEL Classification: O14, L66
Keywords
Full Text:
PDFReferences
Alam, I. M. S., & Morrison, A. R. (2000). Trade reform dynamics and technical efficiency: the Peruvian experience. The World Bank Economic Review, 14(2), 309-330
BPS. (2016). Distribusi Perdagangan Komoditas Gula Pasir Indonesia. Badan Pusat Statistik, Jakarta.
Coelli, T. J., Rao, D. S. P., O'Donnell, C. J., & Battese, G. E. (2005). An introduction to efficiency and productivity analysis. United States: Springer Science & Business Media.
Dao, G. T. N. (2013). An analysis of the technical efficiency of crop farms in the Northern Region of Vietnam. Australia: University of Canberra.
Dewan Gula Indonesia. (2010). Laporan Gula Indonesia 2010. Laporan Intern: 17-23
Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society: Series A (General), 120(3), 253-281
Faruq, H. (2008) “Survival in the export market of Sub-Saharan African Firms,” The Empirical Economics Letters, 7(12), 1213–1220.
Girma, S., Y. Gong., & H. Görg. (2008). Foreign direct investment, access to finance, and innovation activity in China. World Bank Economic Review, 22(2), 367–82.
Harianto, S. K. (2020). Kompetisi, penanaman modal asing, dan efisiensi teknis: studi kasus industri manufaktur Indonesia. Doctoral Dissertation. Universitas Airlangga.
Hsieh, C. T., & P. Klenow. (2009). Misallocation and manufacturing TFP in China and India. Quarterly Journal of Economics, 124(4), 1403–48.
Karimov, A., Awotide, B. A., & Amos, T. T. (2014). Production and scale efficiency of maize farming households in South-Western Nigeria. International Journal of social economics.
Lemi, A., & Wright, I. (2018). Exports, foreign ownership, and firm-level efficiency in Ethiopia and Kenya: an application of the stochastic frontier model. Empirical Economics, 1-30.
Liu, L. X., & Sathye, M. (2016). The impact of foreign ownership and offshore investing on technical efficiency: Evidence from the Chinese managed funds industry. The Journal of Wealth Management, 18(4), 138-151.
Mardianto, S., Simatupang, P., Hadi, P. U., Malian, H., & Susmiadi, A. (2005). Peta jalan (road map) dan kebijakan pengembangan industri gula nasional.
Marpaung, Y. T. F., Hutagaol, P., Limbong, W. H., & Kusnadi, N. (2011). Perkembangan industri gula Indonesia dan urgensi swasembada gula nasional. IJAE (Jurnal Ilmu Ekonomi Pertanian Indonesia), 2(1), 1-14.
Priyanto, E. A., & Qibthiyyah, R. M. (2020). Pengaruh Kepemilikan Asing Terhadap Kinerja Perusahaan Manufaktur Di Indonesia. Jurnal Kebijakan Ekonomi, 15(2), 3.
Ru, L., & Si, W. (2015). Total-factor energy efficiency in China’s sugar manufacturing industry. China Agricultural Economic Review, 7(3), 360-373. https://doi.org/10.1108/CAER-11-2014-0131
Sahoo, B. K., & Nauriyal, D. K. (2014). Trends in and determinants of technical efficiency of software companies in India. Journal of Policy Modeling, 36(3), 539-561.
Sari, D. W., Khalifah, N. A., & Suyanto, S. (2016). The spillover effects of foreign direct investment on the firms’ productivity performances. Journal of Productivity Analysis, 46(2-3), 199-233
Sawit, M., Erwidodo, H., Kuntohartono, T., & Siregar, H. (2004). Penyelamatan dan penyehatan industri gula nasional. Kajian Akademis. Jakarta: Sekretariat Dewan Ketahanan Pangan.
Shahverdi, Z., & Hj Abd Jalil, S. (2015). The inefficiency of Malaysian palm oil refineries and the impact of different factors on its inefficiency. International Journal of Organizational Leadership, 4, 342-355.
Simar, L., & Wilson, P. W. (2000). A General Methodology for Bootstrapping in Non-Parametric Frontier Models. Journal of Applied Statistics,27(6), 779-802.
Stephanie, H., Tinaprilla, N., & Rifin, A. (2018). Efisiensi pabrik kelapa sawit di Indonesia. Jurnal Agribisnis Indonesia, 6(1), 13-22.
Susila, W. R., & Sinaga, B. M. (2005). Analisis kebijakan industri gula Indonesia. Jurnal Agro Ekonomi, 23(1), 30-53.
Tobin, J. (1958). Estimation of relationships for limited dependent variables. Econometrica: Journal of the Econometric Society, 24-36.
Tybout, J. R. (1992). Linking trade and productivity: New research directions. The World Bank Economic Review, 6(2), 189-211.
Vincová, K. (2005). Using DEA models to measure efficiency. Biatec, 13(8), 24-28.
Wang, L., Huo, X., & Kabir, S. (2013). Technical and cost efficiency of rural household apple production. China Agricultural Economic Review.
Wilson, P. W. (2010). FEAR 1.15 user’s guide. South Carolina: Clemson University
Win, T., Haryanto, T., & Sari, D. W. (2021). Analysis of energy efficiency of Indonesia’s sugar industry. International Energy Journal, 21(2), 245-255.
DOI: http://dx.doi.org/10.17977/um002v13i22021p136
Refbacks
- There are currently no refbacks.
ISSN (Print) 2086-1575 ISSN (Online) 2502-7115
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.