IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/59090.html
   My bibliography  Save this paper

Crop diversification, economic performance and household’s behaviours Evidence from Vietnam

Author

Listed:
  • Nguyen, Huy

Abstract

This study examines economic performances and household’s behaviours in multiple crops farming in Vietnam. Smallholder farming systems in Vietnam is being transformed by integration between cash cropping and main food cropping operations. This transformation into diversified farming systems can affect the economies of scope, technical efficiency, and performances of farms. By using the approach of input distance function, we find the first evidence of both scale and scope economies that have important economic performance implications. There is an existence of substantial technical inefficiency in multiple crops farming, which implies that there may be opportunities to expand crop outputs by eliminating technical inefficiency. Enhancing education and further land reforms are main technical efficiency shifters. We also find the complementarity evidence between family labour and other inputs, except hired labour. Thus, policies that lead to more incentives to invest in crop faming activities should focus on the reduction of input costs.

Suggested Citation

  • Nguyen, Huy, 2014. "Crop diversification, economic performance and household’s behaviours Evidence from Vietnam," MPRA Paper 59090, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:59090
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/59090/1/MPRA_paper_59090.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/59167/1/MPRA_paper_59090.pdf
    File Function: revised version
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. C. Peter Timmer, 2014. "Food Security in Asia and the Pacific: The Rapidly Changing Role of Rice," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(1), pages 73-90, January.
    2. Ravallion, Martin & van de Walle, Dominique, 2008. "Does rising landlessness signal success or failure for Vietnam's agrarian transition?," Journal of Development Economics, Elsevier, vol. 87(2), pages 191-209, October.
    3. 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.
    4. Jean‐Paul Chavas & Salvatore Di Falco, 2012. "On the Role of Risk Versus Economies of Scope in Farm Diversification With an Application to Ethiopian Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(1), pages 25-55, February.
    5. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    6. Catherine J. Morrison Paul & Warren E. Johnston & Gerald A. G. Frengley, 2000. "Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 325-337, May.
    7. D'Antoni, Jeremy M. & Khanal, Aditya R. & Mishra, Ashok K., 2014. "Examining Labor Substitution: Does Family Matter for U.S. Cash Grain Farmers?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(02), May.
    8. Minot, Nicholas & Epprecht, Michael & Anh, Tran Thi Tram & Trung, Le Quang, 2006. "Income diversification and poverty in the Northern Uplands of Vietnam:," Research reports 145, International Food Policy Research Institute (IFPRI).
    9. Sanzidur Rahman, 2010. "Women's Labour Contribution to Productivity and Efficiency in Agriculture: Empirical Evidence From Bangladesh," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 318-342.
    10. Daniel Solís & Boris E. Bravo-Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219.
    11. Van Hung, Pham & MacAulay, T. Gordon & Marsh, Sally P., 2007. "The economics of land fragmentation in the north of Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), June.
    12. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    13. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    14. J. Fernandez-Cornejo & C. M. Gempesaw II & J. G. Elterich & S. E. Stefanou, 1992. "Dynamic Measures of Scope and Scale Economies: An Application to German Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 329-342.
    15. Tom Kompas & Tuong Nhu Che & Hoa Thi Minh Nguyen & Ha Quang Nguyen, 2012. "Productivity, Net Returns, and Efficiency: Land and Market Reform in Vietnamese Rice Production," Land Economics, University of Wisconsin Press, vol. 88(3), pages 478-495.
    16. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
    17. Nicholas Minot & Francesco Goletti, 1998. "Export Liberalization and Household Welfare: The Case of Rice in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 738-749.
    18. Peter Warr & Arief Anshory Yusuf, 2014. "Fertilizer subsidies and food self-sufficiency in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 571-588, September.
    19. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
    20. Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-888, September.
    21. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
    22. Grosskopf, S. & Hayes, K. & Hirschberg, J., 1995. "Fiscal stress and the production of public safety: A distance function approach," Journal of Public Economics, Elsevier, vol. 57(2), pages 277-296, June.
    23. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    24. Svend Rasmussen, 2010. "Scale efficiency in Danish agriculture: an input distance--function approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(3), pages 335-367, September.
    25. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
    26. Kolawole Ogundari, 2013. "Crop diversification and technical efficiency in food crop production: A study of peasant farmers in Nigeria," International Journal of Social Economics, Emerald Group Publishing, vol. 40(3), pages 267-287, February.
    27. Kien T. Le, 2010. "Separation Hypothesis Tests in the Agricultural Household Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1420-1431.
    28. COELLI, Tim, 2000. "On the econometric estimation of the distance function representation of a production technology," CORE Discussion Papers 2000042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    29. Xavier Irz & Colin Thirtle, 2004. "Dual Technological Development in Botswana Agriculture: A Stochastic Input Distance Function Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 455-478.
    30. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
    31. Ogundari, K. & Brümmer, Bernhard, 2011. "Estimating Technical Efficiency, Input substitution and complementary effects using Output Distance Function: A study of Cassava production in Nigeria," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2), June.
    32. Willig, Robert D, 1979. "Multiproduct Technology and Market Structure," American Economic Review, American Economic Association, vol. 69(2), pages 346-351, May.
    33. Tom Kompas, 2004. "Market reform, productivity and efficiency in Vietnamese rice production," International and Development Economics Working Papers idec04-4, International and Development Economics.
    34. Kwansoo Kim & Jean-Paul Chavas & Bradford Barham & Jeremy Foltz, 2012. "Specialization, diversification, and productivity: a panel data analysis of rice farms in Korea," Agricultural Economics, International Association of Agricultural Economists, vol. 43(6), pages 687-700, November.
    35. Carol Newman & Alan Matthews, 2007. "Evaluating the Productivity Performance of Agricultural Enterprises in Ireland using a Multiple Output Distance Function Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 128-151, February.
    36. 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.
    37. Jolliffe, Dean, 2004. "The impact of education in rural Ghana: examining household labor allocation and returns on and off the farm," Journal of Development Economics, Elsevier, vol. 73(1), pages 287-314, February.
    38. Subal Kumbhakar & Luis Orea & Ana Rodríguez-Álvarez & Efthymios Tsionas, 2007. "Do we estimate an input or an output distance function? An application of the mixture approach to European railways," Journal of Productivity Analysis, Springer, vol. 27(2), pages 87-100, April.
    39. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
    40. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    41. Pham Van Hung & T. Gordon MacAulay & Sally P. Marsh, 2007. "The economics of land fragmentation in the north of Vietnam ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 195-211, June.
    42. 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.
    43. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633.
    44. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hayatullah Ahmadzai, 2017. "Crop Diversification and Technical Efficiency in Afghanistan: Stochastic Frontier Analysis," Discussion Papers 2017-04, University of Nottingham, CREDIT.

    More about this item

    Keywords

    crop diversification; input distance function; elasticity of substitution; stochastic frontier; technical efficiency;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    Statistics

    Access and download statistics

    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:pra:mprapa:59090. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.