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Efficiency of rice farming households in Vietnam


  • Vu Hoang Linh


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.

Suggested Citation

  • Vu Hoang Linh, 2012. "Efficiency of rice farming households in Vietnam," International Journal of Development Issues, Emerald Group Publishing, vol. 11(1), pages 60-73, April.
  • Handle: RePEc:eme:ijdipp:v:11:y:2012:i:1:p:60-73

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    References listed on IDEAS

    1. Leopold Simar & Paul Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 779-802.
    2. 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.
    3. 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.
    4. 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, June.
    5. 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.
    6. 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.
    7. 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.
    8. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    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. 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.
    11. 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.
    12. 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.
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    Cited by:

    1. Alwin D’souza & Amit Shovon Ray, "undated". "Structural Transformation in the North-Eastern Region of India: Charting out an agriculture-based development policy," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 14-04, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    2. Nguyen, Huy, 2014. "Crop diversification, economic performance and household’s behaviours Evidence from Vietnam," MPRA Paper 59090, University Library of Munich, Germany.
    3. Yeboah, Osei & Thomas, Terrence W. & Gunden, Cihat & Ogbole, Enekole J., 2016. "Efficiency Measure in Nitrogen Pollution Management under U.S. Trade Induced Cotton Production," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229790, Southern Agricultural Economics Association.
    4. repec:eee:agisys:v:153:y:2017:i:c:p:148-156 is not listed on IDEAS


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