Allocative Efficiency of Agrifood Traders

Shrimp Traders in Indonesia

Datos Bibliográficos

ID8415664
AutoresDale Yi (0000-0002-8286-451X, The University of Adelaide), Thomas Reardon (0000-0001-7374-1799, Michigan State University)
Año2015
Volumen51
Número3
Páginas405-423
Fecha de publicación2015-09-02
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaBulletin of Indonesian Economic Studies (JOURNAL)
Identificadores de la revistaISSN: 0007-4918 • E-ISSN: 1472-7234
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00074918.2015.1107676
OpenAlexW2255231023
IdiomaEN
Citas recibidas1
Referencias citadas32

Shrimp is one of Indonesia's most important agricultural export commodities, with an annual export value exceeding $1 billion. If this high-value sector is to remain competitive and continue to grow, rural traders must be able to efficiently allocate scarce labour and factor inputs to trade shrimp. This study tests for factors leading to allocative inefficiency in the shrimp trade, by estimating a stochastic cost frontier on the basis of data from a survey of 200 shrimp traders in Central Java and South Sulawesi. Our results show that larger firms have a distinct cost advantage in trade and, owing in part to greater access to factor markets, are more efficient in allocating factors. Small firms can improve their allocative efficiency and become more competitive by specialising in trading one shrimp variety and by using output contracts to mitigate risk in the output market

Agricultural economics · Allocative efficiency · Biology · Business · Comparative advantage · Economics · Fishery · Inefficiency · International trade · Microeconomics · Shrimp · Value (mathematics) · Agricultural Innovations and Practices · Economic Growth and Fiscal Policies · Taxation and Compliance Studies