IJRR

International Journal of Research and Review

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Research Paper

Year: 2019 | Month: November | Volume: 6 | Issue: 11 | Pages: 117-123

Analysis of Structural Equation Modeling Towards Productivity and Welfare of Farmer's Household in Sub-District Selesai of Langkat Regency

Muhamad Toyib Daulay1, Annisa Sanny2

1,2Lecturer of University Pembangunan Panca Budi Medan, Indonesia

Corresponding Author: Muhamad Toyib Daulay

ABSTRACT

This study aims to analyze whether the Factors of Production, Social Demography, and Social Capital affect the Farmers Productivity in Sub-District of South Regency. To analyze whether the Factors of Production, Social Demography, Social Capital, and Productivity affect the Welfare of Households in the Districts of Selesai, Langkat District. The number of population in this research is 2,516 people, while the sample used is 200 people. The data analyze model used in this study is Structural Equation Modelling (SEM). To analyze the data using the SEM method with the help of the AMOS 22 Software, the method used in collecting data is quantitative method. SEM analyze is reduced to determine the best model of productivity and Welfare of the Respondents in the Districts. Based on the results of the study, Social Demographics and Social Capital have no significant effect on Productivity. Social Demographics and Productivity have no significant effect on household Welfare. Then Factors of Production have an effect on productivity. Factors Product and Social Capital effect the significant of House of household welfare.

Key words: Factors of Production, Social Demography, Social Capital, Productivity and Housing Welfare of Farmers

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