The Effect of Land Area and Labor on Production of Coffee in Indonesia
Abstract
Indonesia is an agricultural country where most of the population works in the agricultural sector. Therefore, the agricultural sector contributes significantly to its economic growth. This study aims to determine the effect of land area and labor production of coffee in Indonesia. The study uses secondary data. Data analysis technique in this study is multiple linear regression with data panels in 32 provinces of high production coffee in Indonesia from 2017 until 2021. Dependent variable is coffee production and the independent variables are land and labor. Results show that land area has a positive and significant effect on coffee production. It means that raising the land area significantly increases the coffee production. However, labor has a positive but not significant effect on coffee production. This study is expected to help Indonesian policy-makers for drafting policies to increase coffee production in Indonesia.
Keywords: coffee production, land area, labor, panel
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