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Analyzing the economies of crop diversification in rural Vietnam using an input distance function

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  • Nguyen, Huy Quynh

Abstract

The farming system in Vietnam is being transformed by integration between a set of cash crops and main food cropping operations. This transformation into diversified farming systems, where smallholders have a production base in rice, can affect output complementarity, technical efficiency, and performance of farms. This study aims to evaluate the economies of crop diversification in rural Vietnam by using the approach of the input distance function. The empirical results reveal that slightly increasing returns to scale are evident in Vietnam's multiple crop production. In addition, the increase in rice production reduces the marginal utilization of inputs for producing other crops. Significant output complementarity is found between rice production and other crops. This finding also implies the potential presence of economies of scope.

Suggested Citation

  • Nguyen, Huy Quynh, 2017. "Analyzing the economies of crop diversification in rural Vietnam using an input distance function," Agricultural Systems, Elsevier, vol. 153(C), pages 148-156.
    • Handle: RePEc:eee:agisys:v:153:y:2017:i:c:p:148-156
    DOI: 10.1016/j.agsy.2017.01.024
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    More about this item

    Keywords

    Crop diversification; Input distance function; Stochastic frontier; Technical efficiency; Economies of scale;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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