Technical Efficiency of Madura Farmers on Hybrid and Local Corn Farming in Guluk-Guluk District, Indonesia

Abstract

This research aimed is analyzing the level of technical efficiency of hybrid and local corn farming and analyzing the factors influenced technical inefficiency. Analysis of the data used stochastic frontier production function estimated by maximum likelihood method (MLE), used a computational program frontier version 4.1 developed by Coelli (1996). The results showed factors that significantly influence the technical efficiency are the seed and worker. The local corn farmers were more efficient than the hybrid ones. It cause by technical inefficiency such as age and education of farmers.

Keywords: Corn, Technical efficiency, Technical inefficiency, Maximum likelihood Method