ECONOMIES OF SCALE OF RATTAN FURNITURE INDUSTRY IN PALEMBANG, SOUTH SUMATERA

Mukhlis, Mukhlis ECONOMIES OF SCALE OF RATTAN FURNITURE INDUSTRY IN PALEMBANG, SOUTH SUMATERA. In: Sriwijaya Economics and Business Conference, 27-28 November 2016, Palembang.

This is the latest version of this item.

[img]
Preview
PDF - Updated Version
Download (764Kb) | Preview

    Abstract

    There is an interesting phenomenon related to the role of small businesses of rattan furniture in Palembang, which mainly related to economies of scale and the nature of the production. This will have an impact on competitiveness, continuity of availability of raw materials and labor absorption. Therefore, this study focused on economies of scale and the nature of the production of rattan furniture business. The data used in this study are primary data obtained through field survey to 25 craftsmen of wicker furniture in the District II East Ilir Palembang as rattan furniture industry center. The model used in this study is a Cobb-Douglas model which estimated using a regression approach. The results show that: 1) Economies of scale position of rattan furniture is decreasing return in scale. This indicates that the expansion of production proportionately reduce the rate of profits; and 2) Nature of the industrial production of rattan furniture in Palembang were labor intensive, because of the use of labor in the production process is more widely used than capital utilization. Keywords: Labor, Capital, Economies of Scal

    Item Type: Conference or Workshop Item (Paper)
    Subjects: H Social Sciences > HD Industries. Land use. Labor
    Divisions: Faculty of Economics > Department of Economics and Development Studies
    Depositing User: SE, M.Si mukhlis mukhlis
    Date Deposited: 31 May 2017 09:18
    Last Modified: 31 May 2017 09:18
    URI: http://eprints.unsri.ac.id/id/eprint/7300

    Available Versions of this Item

    Actions (login required)

    View Item