HOUSEHOLD ECONOMIC MODEL TO IMPROVE SMALL-SCALE FISHERMAN INCOME AT RURAL MINAPADI (RICE-FISH SYSTEM) DEVELOPMENT PROGRAM IN DONGGALA, CENTRAL SULAWESI

Abstract

The general purpose of the study is to find information about and analyze model of Rural Minapadi (Rice-Fish System) Development Program to improve household income of small-scale fishermen. The specific purpose of the study is to develop economic model and household economic behavior of small-scale fisherman through Rural Minapadi (Rice-Fish System) Development Program in Donggala, Central Sulawesi. The population is small-scale fishermen in Donggala who participate in Rural Minapadi (Rice-Fish System) Development Program. Multi-stage sampling is the sampling method. Model of household economy for small-scale fishermen is developed from 17 (seventeen) equations or endogenous variables that consists of 8 (eight) behavioral equations and 9 (nine) identity equations. Two Stage Least Squares (2SLS) and simulation analysis are used to give estimation towards parameters in simultaneous equation. Data analysis uses Statistical Analysis System (SAS). The findings show that household economic model of small-scale fisherman can be described based on the amount of marine commodity they are able to catch, the amount of work they do, household food and non-food spending that tends to increase when there is an increase in size of fishing boat, gasoline consumption and fishing frequency. Based on the analysis, the household economic model for small-scale fisherman is valid theoretically and it can provide accurate description. In order to get larger amount of marine commodity that eventually results in an increase of income and welfare, some household decisions are taken and some policy is established; they are increase in fishing frequency and workload as well as some allowance from the government in the form of fishing equipments and subsidy for gasoline.

Keywords

• Small-scale fisherman
• household
• economic model
• fishing