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Efficiency Estimates for the Agricultural Production in Vietnam: A Comparison of Parametric and Non-parametric Approaches

Author

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  • Nguyen, Khac Minh
  • Giang, Thanh Long

Abstract

This paper uses both parametric and non-parametric approaches to estimate technical, allocative, and economic efficiencies for the agriculture production in sixty provinces of Vietnam in the period 1990-2005. Under different technology specifications, both approaches show that the average technical, allocative, and economic efficiency estimates were not high, and there would be a large room for the studied provinces to improve their agricultural production efficiency. To examine consistency of the estimates from two approaches under different specifications of returns to scale, we use Spearman rank test, and the results indicate that parametric and non-parametric approaches provide different estimates.

Suggested Citation

  • Nguyen, Khac Minh & Giang, Thanh Long, 2009. "Efficiency Estimates for the Agricultural Production in Vietnam: A Comparison of Parametric and Non-parametric Approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(2), June.
  • Handle: RePEc:ags:aergaa:58060
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    File URL: http://purl.umn.edu/58060
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    References listed on IDEAS

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    1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    2. 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.
    3. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 20(1), January.
    4. Kalaitzandonakes, N.G. & Dunn, E.G., 1995. "Technical Efficiency, Managerial Ability and Farmer Education in Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(01), pages 36-46, April.
    5. 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, vol. 18(2), pages 435-444, June.
    6. Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 229-245.
    7. 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.
    8. Kopp, Raymond J. & Diewert, W. Erwin, 1982. "The decomposition of frontier cost function deviations into measures of technical and allocative efficiency," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 319-331, August.
    9. Drake, Leigh & Weyman-Jones, Thomas G, 1996. "Productive and Allocative Inefficiencies in U.K. Building Societies: A Comparison of Non-parametric and Stochastic Frontier Techniques," The Manchester School of Economic & Social Studies, University of Manchester, vol. 64(1), pages 22-37, March.
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    Cited by:

    1. Mohammed, Rezgar & Saghaian, Sayed, 2014. "Technical Efficiency Estimation of Rice Production in South Korea," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162231, Southern Agricultural Economics Association.
    2. Zahidul Islam, K.M. & Sumelius, John & Bäckman, Stefan, 2012. "Do differences in technical efficiency explain the adoption rate of HYV rice? Evidence from Bangladesh," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), January.

    More about this item

    Keywords

    data envelopment analysis (DEA); stochastic frontier production function (SFPF); Spearman rank; Production Economics; C14; N5;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

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