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The Role of Workforce Quality, Village Assistance, and Village-Owned Enterprises on Economic Efficiency Sawaroh; Idialis, Alifah Rokhmah; Yulistyono, Herry; Prabowo, Tripitono Adi
Research Horizon Vol. 5 No. 4 (2025): Research Horizon - August 2025
Publisher : LifeSciFi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54518/rh.5.4.2025.565

Abstract

Economic inefficiency in Pamekasan Regency is reflected in its low GRDP per capita, indicating suboptimal community welfare, particularly in villages. This study aims to analyze and identify village-level economic efficiency influenced workforce quality, village assistance, and the role of village-owned enterprises. Using a quantitative approach, this research applies an output-oriented Data Envelopment Analysis (DEA) method. The findings reveal that 71% of the villages have Constant Return to Scale (CRS), 7% are in Increasing Returns to Scale (IRS), and 22% in Decreasing Returns to Scale (DRS). The average efficiency score is 0.94, indicating that economic efficiency has reached 94%. This suggests that the combination of workforce quality, assistance, and village-owned enterprises involvement contributes significantly to achieving efficient village economies. The study concludes that while the economic efficiency level is high, a 6% improvement remains possible through increased output or reduced input, following the benchmark of optimally efficient Decision-Making Units (DMUs). The novelty of this research lies in its integration of qualitative elements quantified through efficiency measurement tools, providing a focused analysis of how workforce quality, village assistance, and village-owned enterprises institutions influence village-level economic efficiency.