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Do Macroeconomic Shocks Impact The Economic Efficiency Of Small Farmers? The Case Of Wetland Rice Farmers In Indonesia, Jacinto F. Fabiosa, Helen H. Jensen, Dong Yan May 2004

Do Macroeconomic Shocks Impact The Economic Efficiency Of Small Farmers? The Case Of Wetland Rice Farmers In Indonesia, Jacinto F. Fabiosa, Helen H. Jensen, Dong Yan

CARD Working Papers

This study examines the impact of macroeconomic shocks on the efficiency of small farmers. We estimate single- and multiple-factor efficiency measures for Indonesian rice farmers in years before, during, and after the country's macroeconomic crisis. We find that productive efficiency declined by 7 to 22 percent during the crisis, largely because of a decline in technical efficiency and a relatively large volatility in efficiency (the coefficient of variation was larger by a factor of 1.87). Allocative efficiency, on the other hand, increased slightly and offset part of the decrease in technical efficiency. The magnitude of the impact on ...