Nganjuk Regency's Agricultural Sector Growth Model Using a Dynamic System Approach
DOI:
https://doi.org/10.55927/ijbae.v4i5.401Keywords:
Agricultural Sector, Dynamic Systems, Productivity Growth, Total Factor Productivity, Agricultural PolicyAbstract
This thesis aims to develop and analyze a growth model for the agricultural sector in Nganjuk Regency using a dynamic systems approach, given the sector's importance to the regional economy, which faces challenges such as declining contributions to GRDP, climate change, and low technology adoption. The research method used is a quantitative approach through dynamic systems modeling that analyzes the interactions between capital, labor, and total factor productivity (TFP). The results indicate that increasing TFP through the application of precision agriculture technology can increase productivity by an average of 4.6% per year, while increasing capital and labor only result in growth of 2.8% and 1.0% per year, respectively. These findings emphasize the importance of integrating capital investment, improving labor quality, and technological innovation to achieve sustainable agricultural sector growth in Nganjuk Regency.
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