Faktor-faktor yang Memengaruhi Total Factor Productivity Industri Pertanian Indonesia Periode 1981-2010

Abstract

Industry has a big role in Indonesia’s economy as the main driver of development, which it gives the largest contribution to the Gross National Product (GNP). Indonesia is an agrarian country which has a big potency in developing agriculture products because of the abundant resources it has, supporting climate, and fertile soil. This study aims to analyze Total Factor Productivity (TFP) of Indonesia’s agriculture industry through a Cobb-Douglas production function approach and analyze factors influencing it using Error Correction Model (ECM), along with a descriptive method to explain an overview of agriculture industry in Indonesia. Time series data are used for period 1980-2010. The estimation result shows that variables significantly influencing TFP are Gross National Product, domestic investment, export of industry output (X), and investment import (M).