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Production Efficiency of Jasmine Rice Producers in Northern and North-eastern Thailand

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  • Sanzidur Rahman
  • Aree Wiboonpongse
  • Songsak Sriboonchitta
  • Yaovarate Chaovanapoonphol

Abstract

The paper jointly evaluates the determinants of switching to Jasmine rice and its productivity while allowing for production inefficiency at the level of individual producers. Model diagnostics reveal that serious selection bias exists, justifying use of a sample selection framework in stochastic frontier models. Results from the probit variety selection equation reveal that gross return (mainly powered by significantly higher Jasmine rice price), access to irrigation and education are the important determinants of choosing Jasmine rice. Results from the stochastic production frontier reveal that land, irrigation and fertilisers are the significant determinants of Jasmine rice productivity. Significantly lower productivity in Phitsanulok and Tung Gula Rong Hai provinces demonstrate the influence of biophysical and environmental factors on productivity performance. The mean level of technical efficiency is estimated at 0.63 suggesting that 59% [(100 - 63)/63] of the productivity is lost due to technical inefficiency. Policy implications include measures to keep Jasmine rice price high, increase access to irrigation and fertiliser availability, as well as investment in education targeted to farm households which will synergistically increase adoption of Jasmine rice as well as farm productivity. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

Suggested Citation

  • Sanzidur Rahman & Aree Wiboonpongse & Songsak Sriboonchitta & Yaovarate Chaovanapoonphol, 2009. "Production Efficiency of Jasmine Rice Producers in Northern and North-eastern Thailand," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 419-435.
  • Handle: RePEc:bla:jageco:v:60:y:2009:i:2:p:419-435
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    References listed on IDEAS

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    Cited by:

    1. González-Flores, Mario & Bravo-Ureta, Boris E. & Solís, Daniel & Winters, Paul, 2014. "The impact of high value markets on smallholder productivity in the Ecuadorean Sierra: A Stochastic Production Frontier approach correcting for selectivity bias," Food Policy, Elsevier, vol. 44(C), pages 237-247.
    2. Takeshima, Hiroyuki & Jimah, Kipo & Kolavalli, Shashidhara & Diao, Xinshen & Funk, Rebecca Lee, 2013. "Dynamics of transformation: Insights from an exploratory review of rice farming in the Kpong irrigation project:," IFPRI discussion papers 1272, International Food Policy Research Institute (IFPRI).
    3. Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E. Jr & Schmidt, Lance, 2014. "Measurement of Technical, Allocative, Economic, and Scale Efficiency of Rice Production in Arkansas Using Data Envelopment Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(01), February.
    4. Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E., Jr., "undated". "Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142962, Southern Agricultural Economics Association.
    5. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 361-371, May.
    6. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
    7. Thibbotuwawa, Manoj & Mugera, Amin & White, Ben, 2013. "Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152181, Australian Agricultural and Resource Economics Society.
    8. Schipmann, Christin & Qaim, Matin, 2009. "Modern Supply Chains and Product Innovation: How Can Smallholder Farmers Benefit?," 2009 Conference, August 16-22, 2009, Beijing, China 51046, International Association of Agricultural Economists.
    9. Muhammad Arif Watto & Amin W. Mugera, 2014. "Measuring Production and Irrigation Efficiencies of Rice Farms: Evidence from the Punjab Province, Pakistan," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 301-322, September.
    10. William Greene, 2010. "A stochastic frontier model with correction for sample selection," Journal of Productivity Analysis, Springer, vol. 34(1), pages 15-24, August.
    11. repec:gam:jsusta:v:9:y:2017:i:9:p:1648-:d:112190 is not listed on IDEAS
    12. Boris Bravo-Ureta & William Greene & Daniel Solís, 2012. "Technical efficiency analysis correcting for biases from observed and unobserved variables: an application to a natural resource management project," Empirical Economics, Springer, vol. 43(1), pages 55-72, August.
    13. repec:gam:jsusta:v:9:y:2017:i:5:p:770-:d:97918 is not listed on IDEAS
    14. Sumelius, John & Islam, K.M. Zahidul & Sipilainen, Timo, 2011. "Access to Microfinance: Does it Matter for Profit Efficiency Among Small Scale Rice Farmers in Bangladesh?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116067, European Association of Agricultural Economists.
    15. Boris E. Bravo-Ureta, 2014. "Stochastic frontiers, productivity effects and development projects," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 51-58.
    16. Giraud, Georges, 2013. "The World Market of Fragrant Rice, Main Issues and Perspectives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 16(2).

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