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Asian Journal of Scientific Research
  Year: 2019 | Volume: 12 | Issue: 1 | Page No.: 79-83
DOI: 10.3923/ajsr.2019.79.83
 
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Determinants of Maize Supply from Dryland Farming: Evidence from Central Java
Dina Rahayuning Ratri, Wiwit Rahayu and Ernoiz Antriyandarti

Abstract:
Background and Objective: In Central Java, maize is a kind of crop that has the potential to be developed as the number of food-processing industry increases. Wonogiri district is a dryland maize-producer area with production always increases every year. Based on its natural conditions, the region could not support maize farming well enough. However, with limited natural conditions, Wonogiri become the second-highest maize production areas in Central Java. This research aimed to analyze the determinant of maize supply, the most influential factors to maize supply and its elasticity. Materials and Methods: In order to estimate the determinants of maize supply, this study uses agricultural time series data for 16 years from 2001-2016 recorded by Central Bureau of Statistics, Department of Industry and Trade, Cooperatives and Small Medium Enterprises, Department of Agriculture and Bank Indonesia of Wonogiri district. Then, linear multiple regression is applied to analyze the data. Seven variables are selected to examine the determinants of maize supply. Result: The result shows that the estimated parameter of maize production in the previous year, harvested area, price of maize in the previous year and price of urea fertilizer have significantly affect to the maize supply. In addition, the significant variables have varying elasticity values, both in the long-term and short-term. The supply elasticity of production in the short term is smaller than 1, while the long-term elasticity is larger than 1. The supply elasticity of harvested area in the long term and short term is greater than 1. The supply elasticity of maize price in the previous year and fertilizer price are less than 1, both in the long run and short term. Conclusion: The determinant analysis of maize supply in Central Java shows that maize production in the previous year, harvested area, price of maize in the previous year and price of urea fertilizer influence the maize supply from dryland farming in Central Java. Harvested area is the most influential factor. Furthermore, the supply elasticity of production in the short term is inelastic, while in the long-term is elastic. The supply elasticity of harvested area in the long term and short term is elastic. On the other hand, the supply elasticity of maize price and urea fertilizer price are inelastic both in the short term and long term.
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How to cite this article:

Dina Rahayuning Ratri, Wiwit Rahayu and Ernoiz Antriyandarti, 2019. Determinants of Maize Supply from Dryland Farming: Evidence from Central Java. Asian Journal of Scientific Research, 12: 79-83.

DOI: 10.3923/ajsr.2019.79.83

URL: https://scialert.net/abstract/?doi=ajsr.2019.79.83

 
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