Technical efficiency of capture fisheries: stochastic production frontier approach

Abstract

This paper investigates the production function and technical inefficiency of the capture fisheries in Central Maluku Regency and Ambon City using cross sectional data set of 165 respondents selected using multistage random sampling. The stochastic production frontier was utilized and estimated using maximum likelihood estimates (MLE) procedure. The research indicated that most variables namely, length and width of fishing gears, number of persons per vessel, investment value of fishing unit, and time spent in fishing per trip, were statistically significant. On average, fishers operated in 82 percent efficiency in the east season, and 51 percent in the west season. It was also found that age of skipper, total household size of skipper, and skipper's years of fishing experience significantly influenced technical inefficiency of fishing.