Banana Farming-Based Rural Economic Development Model

Abstract

The low level of rural economic development is evident from the suboptimal contribution of plantain farming to improving community welfare. Plantain farming still faces various obstacles, such as added value, weak farmer institutions, limited access to markets and technology, and a lack of policy support and socio-cultural factors. These conditions have prevented plantain from realizing its potential as a strategic village commodity that could have a significant impact on rural economic growth. This study aims to formulate a model for village economic development based on plantain farming using SEM-PLS analysis. The results show that market access, technology, government policy, and social factors have a significant effect on village economic development, both directly and through the mediation of entrepreneurial spirit. These factors are key in bridging the influence of external factors on rural economic growth. The resulting model contributes to strengthening rural economic development and provides practical recommendations for local governments and communities in strengthening institutions, increasing technology adoption, expanding market access, and promoting sustainable farmer welfare.