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Agricultural extension and technical efficiency of tea production in northeastern Vietnam

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  • Phu Nguyen-Van
  • Nguyen To-Thea

Abstract

This study uses the stochastic production frontier to analyze technical efficiency of tea production in northeastern Vietnam. Our study estimated that the average technical efficiency of tea production is very low, only about 32%. Technical efficiency can be improved by having a training on sale skills whereas it can be negatively a?ected by access to information on tea market. The results indicated that there are a big potential for improving technical efficiency in tea production by using the available inputs and technology. For the purpose of improving efficiency, efforts should be made on agricultural extension (keeping the current form of training on sale skills, modifying the provision of information on tea market). Producers are also recommended to be more careful on the adoption of tea variety for their cultivation.

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Bibliographic Info

Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2014-11.

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Date of creation: 2014
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Handle: RePEc:ulp:sbbeta:2014-11

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Keywords: Agriculture extension; technical efficiency; stochastic frontier; translog; tea production.;

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  1. Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, Elsevier, vol. 9(3), pages 343-366, February.
  2. William C. Horrace & Peter Schmidt, 2000. "Multiple comparisons with the best, with economic applications," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(1), pages 1-26.
  3. Ahmad, Munir & Chaudhry, Ghulam Mustafa & Iqbal, Muhammad, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," MPRA Paper 3672, University Library of Munich, Germany, revised 2002.
  4. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  5. Bravo-Ureta, Boris E. & Pinheiro, Antonio E., 1993. "Efficiency Analysis Of Developing Country Agriculture: A Review Of The Frontier Function Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, Northeastern Agricultural and Resource Economics Association, vol. 22(1), April.
  6. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, Elsevier, vol. 46(1-2), pages 39-56.
  7. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, Elsevier, vol. 13(1), pages 57-66, May.
  8. Rafael Cuesta, 2000. "A Production Model With Firm-Specific Temporal Variation in Technical Inefficiency: With Application to Spanish Dairy Farms," Journal of Productivity Analysis, Springer, Springer, vol. 13(2), pages 139-158, March.
  9. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, Elsevier, vol. 9(1), pages 43-64, August.
  10. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521666633.
  11. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
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