Technical Efficiency and Return to Scale in The Indonesia Economy During The New Order and The Reformation Governments

Abstract

Abstracthis paper analyses technical ef ciency and return to scale in the ndonesia economy during the year of to . hese range of years covering t o eras of ndonesian government the e Order era that lasted between the year of 1966 to 1998 and the Reformation era during the year 1998 to 1 . he analysis was also based on the ndonesia economy s business cycle those categorised as Oil Booming Phase (1967-1981), Recession Phase (1982-1986), Deregulation Phase (1987, Multidimension Crisis Phase (1997)(1998)(1999)(2000)(2001) and Economic Recovery Phase (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013). Using data on Gross Domestic Product based on constant price of the year 2000, capital stock with the same based year and employment , Cobb-Douglas production functions were exercised to calculate technical ef ciency and return to scale employing regression analysis tehni ues. he results shows that technical ef ency during the ew Order Goverment were better than those during Reformation Goverment. he results also showed that technical ef ciencies vary among phases in the ndonesian economy.

Combining aggregate production function and technical efficiency: Indonesian case study

“…However, studies about Indonesian aggregate production function and technical efficiency simultaneously are limited. Among them are Muchdie (2016)…”