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Efficiency of rice farming households in Vietnam

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  • Vu Hoang Linh

Abstract

Purpose – The purpose of this paper is to estimate technical efficiency obtained from both data envelopment analysis (DEA) and stochastic frontier approaches using household survey data for rice farming households in Vietnam. Design/methodology/approach – A bootstrap method is used to provide statistical precision of the DEA estimator. Technical efficiency is modeled as a function of household and production factors. Findings – The results from the deterministic, semi-parametric and parametric approaches indicate that among other things, technical efficiency is significantly influenced by primary education and regional factors. In addition, scale efficiency analysis shows that many farms in Vietnam are operating with less than optimal scale of operation. Originality/value – The study is among the first that employ a bootstrap method and compare estimates from both Data Envelopment Analysis (DEA) and stochastic frontier approaches.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal International Journal of Development Issues.

Volume (Year): 11 (2012)
Issue (Month): 1 (April)
Pages: 60-73

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Handle: RePEc:eme:ijdipp:v:11:y:2012:i:1:p:60-73

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Related research

Keywords: Bootstrap; Data envelopment analysis; Efficiency; Farms; Rice; Stochastic frontier; Vietnam;

References

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  1. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  2. SIMAR, Léopold & WILSON, Paul, 1995. "Sensitivity Analysis to Efficiency Scores : How to Bootstrap in Nonparametric Frontier Models," CORE Discussion Papers 1995043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Kelvin Balcombe & Iain Fraser & Jae Kim, 2006. "Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies," Applied Economics, Taylor & Francis Journals, vol. 38(19), pages 2221-2236.
  4. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
  5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  6. H. Son Nghiem & T. Coelli, 2002. "The Effect of Incentive Reforms Upon Productivity: Evidence from the Vietnamese Rice Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 74-93.
  7. Jean-Paul Chavas & Ragan Petrie & Michael Roth, 2005. "Farm Household Production Efficiency: Evidence from The Gambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 160-179.
  8. Simar, L. & Wilson, P.W., 1998. "A General Methodology for Bootstrapping in Nonparametric Frontier Models," Papers 9811, Catholique de Louvain - Institut de statistique.
  9. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
  10. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, 06.
  11. TRAN Thi Ut & Kei KAJISA, 2006. "The Impact Of Green Revolution On Rice Production In Vietnam," The Developing Economies, Institute of Developing Economies, vol. 44(2), pages 167-189.
  12. Kalaitzandonakes, Nicholas G. & Dunn, Elizabeth G., 1995. "Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), April.
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