The analysis of technical efficiency for the Tuna Longline fishery an application of the Stochastic production frontier approach

LESTARI, Lilik Budi, Prof. Yuichiro Uchida

2009 | Tesis | S2 Magister Ekonomika Pembangunan

unavailable in fulltext

In this study, the stochastic production frontier approach was used to assess technical efficiency for the tuna longline fishery in Indonesia. Data used was an unbalanced panel data set, with a total of 1,094 observations from 2004 to 2007. Output was measured by the weight of tuna catches (kilograms), since data for the value of tuna catches were not completely available. The results have indicated that a translog production function specifies the stochastic frontier production function. In this study, the specific vessel characteristics were used to estimate the factors causing inefficiency. The findings emphasize that longline vessels in Indonesia are not operated in a technically efficient way. The efficiency among longline vessels only reaches a 24.86 percent efficient level. The sources of inefficiency are related to the presence of foreign crewmembers, the age of vessels and location of a home port. Hiring Indonesian crews on longline vessels tend to have higher efficiency. Furthermore, the Government continuously provides fishing training programs for Indonesian crewmembers to improve their fishing skills. Moreover, utilizing new vessels and vessels being based at home ports other than Benoa (Bali) would result in higher efficiency

Kata Kunci : Fish,Fish industri, tuna, technical efficiency, stochastic production frontier, unbalanced panel data.