ECONOMIC OF SCALE PALM OIL INDUSTRY (ISIC : 10431) INDONESIA

Authors

  • Sisilia Aura Putri Permia Department of Economics, Faculty of Economics, Universitas Sriwijaya, Indonesia
  • Imam Asngari Department of Economics, Faculty of Economics, Universitas Sriwijaya, Indonesia
  • Deassy Apriani Department of Economics, Faculty of Economics, Universitas Sriwijaya, Indonesia

Keywords:

Economic of Scale, Cobb-Douglas, Palm Oil Industry

Abstract

Indonesia is the global langers palm oil producer. Palm oil has the hightest production compared to other commodities, one of the reasons is the area that is owned by Indonesia. This research analyzed the economic of scale of the palm oil industry and the effect of capital and labor on the production of the palm oil industry. This research used secondary data from Indonesian Statistic in the period of 2000-2019. This research used the Cobb-Douglas production function to calculate the economic of scale by using multiple regression. The results showed the variables of capital and labor have a positive and significant effect on the production of the palm oil industry. The economic of scale of the palm oil industry showed a decreasing scale category with the coefficient results is 0.526836.

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Published

2024-12-30

Issue

Vol. 4 No. 2 (2024): JURNAL KLASSEN

Section

Articles