IDEAS home Printed from https://ideas.repec.org/a/asi/ajosrd/v13y2023i2p120-129id4778.html
   My bibliography  Save this article

Effects of varieties and seasons on cost efficiency in rice farming: A stochastic metafrontier approach

Author

Listed:
  • Phuc Trong Ho
  • Pham Xuan Hung
  • Nguyen Duc Tien

Abstract

Rice production costs vary substantially across rice varieties and cropping seasons; however, the effects of rice varieties and cropping seasons on the cost efficiency of rice farming have not been given much attention by researchers. In this paper, we attempt to examine these effects on the cost efficiency of rice production in Vietnam. We use a stochastic metafrontier approach to compare the cost efficiency of rice production between two rice variety groups (a high-quality rice variety and a conventional rice variety group) and three cropping seasons (Winter-Spring, Summer-Autumn, and Autumn-Winter). The data consist of 918 observations collected from rice farmers in the Mekong River Delta, the main rice-cultivation region of Vietnam. The results show that there is statistical evidence for the effects of rice varieties and cropping seasons on cost efficiency. High-quality rice variety adopters performed less efficiently (0.837) than non-adopters (0.864). Rice farmers exhibited a lower mean cost efficiency in the Winter-Spring season (0.883) than in the Summer-Autumn (0.907) and Autumn-Winter (0.905) seasons. This research suggests that policies should support inefficient rice farmers to reduce their inefficiency in the Winter-Spring season as well as support high-quality rice variety adopters to catch up with the cost-efficiency level of conventional rice variety farmers.

Suggested Citation

  • Phuc Trong Ho & Pham Xuan Hung & Nguyen Duc Tien, 2023. "Effects of varieties and seasons on cost efficiency in rice farming: A stochastic metafrontier approach," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 13(2), pages 120-129.
  • Handle: RePEc:asi:ajosrd:v:13:y:2023:i:2:p:120-129:id:4778
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5005/article/view/4778/7586
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Trung Thanh Nguyen & Viet-Ngu Hoang & Bumsuk Seo, 2012. "Cost and environmental efficiency of rice farms in South Korea," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 369-378, July.
    2. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    4. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 1-11, December.
    5. Vu Hoang Linh, 2012. "Efficiency of rice farming households in Vietnam," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 11(1), pages 60-73, April.
    6. Vu Hoang Linh, 2012. "Efficiency of rice farming households in Vietnam," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 11(1), pages 60-73, April.
    7. Ligia Alba Melo-Becerra & Antonio José Orozco-Gallo, 2017. "Technical efficiency for Colombian small crop and livestock farmers: A stochastic metafrontier approach for different production systems," Journal of Productivity Analysis, Springer, vol. 47(1), pages 1-16, February.
    8. 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.
    9. Mohamed Chaffai & M. Kabir Hassan, 2019. "Technology Gap and Managerial Efficiency: A Comparison between Islamic and Conventional Banks in MENA," Journal of Productivity Analysis, Springer, vol. 51(1), pages 39-53, February.
    10. Huynh Truong Huy, 2009. "Technical Efficiency of Rice-Producing Households in the Mekong Delta of Vietnam," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(2), pages 35-50, December.
    11. Kotchikpa G. Lawin & Lota D. Tamini, 2019. "Tenure Security and Farm Efficiency Analysis Correcting for Biases from Observed and Unobserved Variables: Evidence from Benin," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(1), pages 116-134, February.
    12. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    13. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    14. Yujiro Hayami, 1969. "Sources of Agricultural Productivity Gap Among Selected Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 564-575.
    15. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    16. Fontin, Jean-Raymond & Lin, Shi-Woei, 2019. "Comparison of banking innovation in low-income countries: A meta-frontier approach," Journal of Business Research, Elsevier, vol. 97(C), pages 198-207.
    17. Issahaku, Gazali & Abdulai, Awudu, 2020. "Sustainable Land Management Practices and Technical and Environmental Efficiency among Smallholder Farmers in Ghana," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(1), pages 96-116, February.
    18. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    19. 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.
    20. Dong, Ying & Mu, Yueying & Abler, David, 2019. "Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(4), pages 591-605, November.
    21. Le, Viet & Vu, Xuan-Binh (Benjamin) & Nghiem, Son, 2018. "Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 84-91.
    22. Huy, Huynh Truong, 2009. "Technical Efficiency of Rice-Producing Households in the Mekong Delta of Vietnam," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(2), pages 1-16, December.
    23. Thanh Pham Thien Nguyen & Son Hong Nghiem & Eduardo Roca & Parmendra Sharma, 2016. "Efficiency, innovation and competition: evidence from Vietnam, China and India," Empirical Economics, Springer, vol. 51(3), pages 1235-1259, November.
    24. Cliff Huang & Tai-Hsin Huang & Nan-Hung Liu, 2014. "A new approach to estimating the metafrontier production function based on a stochastic frontier framework," Journal of Productivity Analysis, Springer, vol. 42(3), pages 241-254, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2011. "Technical efficiency and technology gaps in beef cattle production systems in Kenya: A stochastic metafrontier analysis," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108947, Agricultural Economics Society.
    2. Zarkovic, Maja, 2020. "Cap-and-trade and produce at least cost? Investigating firm behaviour in the EU ETS," Working papers 2020/12, Faculty of Business and Economics - University of Basel.
    3. John N. Ng’ombe, 2017. "Technical efficiency of smallholder maize production in Zambia: a stochastic meta-frontier approach," Agrekon, Taylor & Francis Journals, vol. 56(4), pages 347-365, October.
    4. Abebayehu Girma Geffersa & Frank Wogbe Agbola & Amir Mahmood, 2022. "Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 54(5), pages 506-521, January.
    5. Khanal, Uttam & Wilson, Clevo & Shankar, Sriram & Hoang, Viet-Ngu & Lee, Boon, 2018. "Farm performance analysis: Technical efficiencies and technology gaps of Nepalese farmers in different agro-ecological regions," Land Use Policy, Elsevier, vol. 76(C), pages 645-653.
    6. Owusu, Eric S. & Bravo-Ureta, Boris E., 2022. "Reap when you sow? The productivity impacts of early sowing in Malawi," Agricultural Systems, Elsevier, vol. 199(C).
    7. Delnava, Haleh & Khosravi, Ali & El Haj Assad, Mamdouh, 2023. "Metafrontier frameworks for estimating solar power efficiency in the United States using stochastic nonparametric envelopment of data (StoNED)," Renewable Energy, Elsevier, vol. 213(C), pages 195-204.
    8. Tai-Hsin Huang & Yi-Chun Lin & Kuo-Jui Huang & Yu-Wei Liao, 2022. "Comparing Cost Efficiency Between Financial and Non-financial Holding Banks and Insurers in Taiwan Under the Framework of Copula Methods and Metafrontier," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(4), pages 735-766, December.
    9. Nguyen, Hoa-Thi-Minh & Do, Huong & Kompas, Tom, 2021. "Economic efficiency versus social equity: The productivity challenge for rice production in a ‘greying’ rural Vietnam," World Development, Elsevier, vol. 148(C).
    10. Tanko, Mohammed & Ismaila, Salifu, 2021. "How culture and religion influence the agriculture technology gap in Northern Ghana," World Development Perspectives, Elsevier, vol. 22(C).
    11. Owusu, Rebecca & Kwadzo, Moses & Ghartey, William, 2022. "Regional Productivity Differential and Technology Gap In African Agriculture: A Stochastic Metafrontier Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 10(1), January.
    12. Li, Hong-Zhou & Kopsakangas-Savolainen, Maria & Xiao, Xing-Zhi & Lau, Sim-Yee, 2017. "Have regulatory reforms improved the efficiency levels of the Japanese electricity distribution sector? A cost metafrontier-based analysis," Energy Policy, Elsevier, vol. 108(C), pages 606-616.
    13. Nwigwe, Cecilia & Okoruwa, Victor & Obi-Egbedi, Oghenerueme, 2015. "Efficiency differentials and technological gaps in beef cattle production systems in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 229377, International Association of Agricultural Economists.
    14. Chiu, Yung-ho & Luo, Zhengying & Chen, Yu-Chuan & Wang, Zebin & Tsai, Min-Pei, 2013. "A comparison of operating performance management between Taiwan banks and foreign banks based on the Meta-Hybrid DEA model," Economic Modelling, Elsevier, vol. 33(C), pages 433-439.
    15. Economou, Polychronis & Malefaki, Sonia & Kounetas, Konstantinos, 2019. "Productive Performance and Technology Gaps using a Bayesian Metafrontier Production Function: A cross-country comparison," MPRA Paper 94462, University Library of Munich, Germany.
    16. Shalander Kumar & Abhishek Das & Michael Hauser & Geoffrey Muricho & Tulu Degefu & Asnake Fikre & Chris Ojiewo & Setotaw Ferede & Rajeev K. Varshney, 2022. "Estimating the potential to close yield gaps through increased efficiency of chickpea production in Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(5), pages 1241-1258, October.
    17. Bahta, Sirak & Baker, Derek & Malope, Patrick & Katijuongua, Hikuepi, 2015. "A metafronteir analysis of determinants of technical efficiency in beef farm types: an application to Botswana," 2015 Conference, August 9-14, 2015, Milan, Italy 211194, International Association of Agricultural Economists.
    18. Gong, Tianchen (Charles) & Battese, George E. & Villano, Renato A., 2019. "Family farms plus cooperatives in China: Technical efficiency in crop production," Journal of Asian Economics, Elsevier, vol. 64(C), pages 1-1.
    19. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    20. Roy, Manish & Mazumder, Ritwik, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajosrd:v:13:y:2023:i:2:p:120-129:id:4778. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5005/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.