Model of agricultural performance in Aceh

Abstract

This study aims to develop a model of agricultural performance in Aceh. Multiple regression analysis was used as the research’s analytical approach. The Random Effect model (REM) was selected to estimate the performance of agriculture sector. The research results show that labor absorption in agriculture sector is significantly affected by minimum wages, regional gross domestic product, and investment. Based on the relationship between variables, the minimum wage has a negative relationship, gross regional domestic product and investment relate positively to labor absorption in the agricultural sector. The amount of labor absorption in agriculture sector will have an effect on the sustainability of food safety.