Determinants of Rubber Farming Household Consumption A Case Study of Musi Rawas Regency, South Sumatera Province

Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: imamudin@umy.ac.id

Abstract

The problem studied is the expenditure pattern of the households engaged in the rubber farming industry in Musi Rawas Regency, South Sumatra Province. The analysis method was a multiple regression model with food and non-food consumption expenditure as the dependent variable and spendable income, the number of family members, and investment in education as independent variables. The findings uncovered that spendable income, and the number of family members were the household expenditure models for food consumption that had a significant impact. Meanwhile, food consumption was unaffected by the educational investment variable. In the non-food consumption model, all variables, i.e., spendable income and educational investment, had a significant effect. Additionally, the expenditure pattern of households engaged in rubber farming showed that they tended to spend more on non-food consumption, such as vehicle fuel and donations that have become the culture or tradition of the local community. Hence, to improve the welfare of rubber farming households and boost their income, this study recommends implementing affirmative policies that ensure price stability.