IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i15p11633-d1204448.html
   My bibliography  Save this article

The Impact of Natural Disasters and Pest Infestations on Technical Efficiency in Rice Production: A Study in Vietnam

Author

Listed:
  • Tuan Minh Cao

    (School of Economics, Can Tho University, Can Tho 94115, Vietnam)

  • Sang Hyeon Lee

    (Department of Food and Resource Economics, Korea University, Seoul 02841, Republic of Korea)

  • Ji Yong Lee

    (Department of Agricultural and Resource Economics, Kangwon National University, Chuncheon-si 24341, Republic of Korea)

Abstract

This study examines the effects of natural disasters, such as typhoons, floods, droughts, and pest infestations, on the technical efficiency of rice production in Vietnam. Employing stochastic frontier analysis (SFA), the research estimates the technical efficiency in rice production of 2394 farmers from the 2018 Vietnam Access to Resources Household Survey (VARHS) dataset. The findings indicate that the average technical efficiency of rice production among these farmers is 78.99%. Exposure to natural disasters and pest infestations leads farmers to reduce their investments in rice production, resulting in decreased technical efficiency, lower yields, and reduced profitability. Among the various disasters, droughts have the most significant adverse impact on technical efficiency in rice production. The results highlight the limited capacity of farmers to cope with the challenges posed by natural disasters in rice production. The study emphasizes the importance of providing timely support to farmers, fostering resilience within the context of rice farming, and enhancing agricultural sustainability in Vietnam. To address these challenges effectively, policymakers are advised to prioritize facilitating farmers’ access to agricultural insurance. Additionally, encouraging income diversification among farmers becomes crucial to ensuring provisions in the case of income loss from rice production due to natural disasters or pest infestations. Moreover, measures such as promoting climate-smart agricultural practices, improving water management infrastructure, establishing early warning systems, and emphasizing pest and disease control measures can be implemented to mitigate losses resulting from natural disasters and pest infestations.

Suggested Citation

  • Tuan Minh Cao & Sang Hyeon Lee & Ji Yong Lee, 2023. "The Impact of Natural Disasters and Pest Infestations on Technical Efficiency in Rice Production: A Study in Vietnam," Sustainability, MDPI, vol. 15(15), pages 1-16, July.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:15:p:11633-:d:1204448
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/15/11633/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/15/11633/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dai, Meng & Huang, Shengzhi & Huang, Qiang & Leng, Guoyong & Guo, Yi & Wang, Lu & Fang, Wei & Li, Pei & Zheng, Xudong, 2020. "Assessing agricultural drought risk and its dynamic evolution characteristics," Agricultural Water Management, Elsevier, vol. 231(C).
    2. Ferrer, Alice Joan G. & Thanh, Le Ha & Kiet, Nguyen Tuan & Chuong, Pham Hong & Trang, Vu Thu & Hopanda, Jinky C. & Carmelita, Benedict Mark & Gummadi, Sridhar & Bernardo, Eisen Bernard, 2022. "The impact of an adjusted cropping calendar on the welfare of rice farming households in the Mekong River Delta, Vietnam," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 639-652.
    3. 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.
    4. Anh Tuan Bui & Mardi Dungey & Cuong Viet Nguyen & Thu Phuong Pham, 2014. "The impact of natural disasters on household income, expenditure, poverty and inequality: evidence from Vietnam," Applied Economics, Taylor & Francis Journals, vol. 46(15), pages 1751-1766, May.
    5. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.
    6. Nguyen Huu Dung & Tran Chi Thien, 1999. "Impact of Agro-Chemical Use on Productivity and Health in Vietnam," EEPSEA Research Report rr1999011, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1999.
    7. de Fraiture, Charlotte & Molden, David & Wichelns, Dennis, 2010. "Investing in water for food, ecosystems, and livelihoods: An overview of the comprehensive assessment of water management in agriculture," Agricultural Water Management, Elsevier, vol. 97(4), pages 495-501, April.
    8. 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.
    9. Pedroso, Rui & Tran, Dang Hoa & Viet, Trinh Quoc & Le, An Van & Dang, Khoa Tran & Le, Khac Phuc, 2018. "Technical efficiency of rice production in the delta of the Vu Gia Thu Bon river basin, Central Vietnam," World Development Perspectives, Elsevier, vol. 9(C), pages 18-26.
    10. Paolo Ceci & Lavinia Monforte & Chiara Perelli & Clara Cicatiello & Giacomo Branca & Silvio Franco & Fatoumata Binta Sombily Diallo & Emanuele Blasi & Giuseppe Scarascia Mugnozza, 2021. "Smallholder farmers’ perception of climate change and drivers of adaptation in agriculture: A case study in Guinea," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1991-2012, November.
    11. M. Jamal Hajjar & Nazeer Ahmed & Khalid A. Alhudaib & Hidayat Ullah, 2023. "Integrated Insect Pest Management Techniques for Rice," Sustainability, MDPI, vol. 15(5), pages 1-26, March.
    12. Thanh Tam Ho & Koji Shimada, 2019. "The Effects of Climate Smart Agriculture and Climate Change Adaptation on the Technical Efficiency of Rice Farming—An Empirical Study in the Mekong Delta of Vietnam," Agriculture, MDPI, vol. 9(5), pages 1-20, May.
    13. 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.
    14. 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.
    15. Tarp, Finn (ed.), 2017. "Growth, Structural Transformation, and Rural Change in Viet Nam: A Rising Dragon on the Move," OUP Catalogue, Oxford University Press, number 9780198796961.
    16. 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.
    17. Sokvibol Kea & Hua Li & Linvolak Pich, 2016. "Technical Efficiency and Its Determinants of Rice Production in Cambodia," Economies, MDPI, vol. 4(4), pages 1-17, October.
    18. 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.
    19. Thi Lam Bui & Huu Cuong Tran & Hossein Azadi & Philippe Lebailly, 2018. "Improving the Technical Efficiency of Sengcu Rice Producers through Better Financial Management and Sustainable Farming Practices in Mountainous Areas of Vietnam," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    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. 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.
    2. Williams, Jonathan, 2004. "Determining management behaviour in European banking," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2427-2460, October.
    3. 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.
    4. repec:use:tkiwps:3232 is not listed on IDEAS
    5. Roberto Furesi & Fabio Madau & Pietro Pulina, 2013. "Technical efficiency in the sheep dairy industry: an application on the Sardinian (Italy) sector," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-11, December.
    6. Schalk Hans Joachim & Untiedt Gerhard & Lüschow Jörg, 1995. "Technische Effizienz, Wachstum und Konvergenz in den Arbeitsmarktregionen der Bundesrepublik Deutschland (West). Eine ökonometrische Analyse für die Verarbeitende Industrie mit einem „Frontier Product," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 214(1), pages 25-49, February.
    7. Tauer, Loren W. & Mishra, Ashok K., 2006. "Can the small dairy farm remain competitive in US agriculture?," Food Policy, Elsevier, vol. 31(5), pages 458-468, October.
    8. David Mayston, 2015. "Analysing the effectiveness of public service producers with endogenous resourcing," Journal of Productivity Analysis, Springer, vol. 44(1), pages 115-126, August.
    9. Mike Tsionas & Marwan Izzeldin & Arne Henningsen & Evaggelos Paravalos, 2022. "Addressing endogeneity when estimating stochastic ray production frontiers: a Bayesian approach," Empirical Economics, Springer, vol. 62(3), pages 1345-1363, March.
    10. Luis R. Murillo-Zamorano & Juan Vega-Cervera, "undated". "The Use of Parametric and Non Parametric Frontier Methods to Measure the Productive Efficiency in the Industrial Sector. A Comparative Study," Discussion Papers 00/17, Department of Economics, University of York.
    11. Massimo Del Gatto & Adriana Di Liberto & Carmelo Petraglia, 2011. "Measuring Productivity," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 952-1008, December.
    12. 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).
    13. Vangelis Tzouvelekas & Konstantinos Giannakas & Peter Midmore & Konstantinos Mattas, 1997. "Technical efficiency measures for olive-growing farms in Crete, Greece," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(2), pages 154-169, May.
    14. Pavlos Almanidis & Robin C. Sickles, 2016. "Banking Crises, Early Warning Models, and Efficiency," International Series in Operations Research & Management Science, in: Juan Aparicio & C. A. Knox Lovell & Jesus T. Pastor (ed.), Advances in Efficiency and Productivity, chapter 0, pages 331-364, Springer.
    15. Aikaterini Kokkinou, 2010. "A Note on Theory of Productive Efficiency and Stochastic Frontier Models," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 109-118.
    16. Luis Murillo-Zamorano & Carmelo Petraglia, 2011. "Technical efficiency in primary health care: does quality matter?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(2), pages 115-125, April.
    17. Amer Ait Sidhoum & K Hervé Dakpo & Laure Latruffe, 2022. "Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-17, January.
    18. Manlagnit, Maria Chelo V., 2015. "Basel regulations and banks’ efficiency: The case of the Philippines," Journal of Asian Economics, Elsevier, vol. 39(C), pages 72-85.
    19. William Greene, 2003. "Simulated Likelihood Estimation of the Normal-Gamma Stochastic Frontier Function," Journal of Productivity Analysis, Springer, vol. 19(2), pages 179-190, April.
    20. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    21. Léopold Simar & Paul W. Wilson, 2015. "Statistical Approaches for Non-parametric Frontier Models: A Guided Tour," International Statistical Review, International Statistical Institute, vol. 83(1), pages 77-110, April.

    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:gam:jsusta:v:15:y:2023:i:15:p:11633-:d:1204448. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.