Technical efficiency of rice production in Vietnam: a stochastic frontier approach

Abstract

This study estimates the technical efficiency of the rice farmers in Vietnam from the stochastic frontier production function using Vietnam Access to Resources Household Survey (2008). This study finds that the labour, machine, seed, fertilizer, pesticide and herbicide strongly affect rice productivity. The mean technical efficiency of farmers is 60.28%. The technical efficiency level of sampled farmers ranges from 17.79% to 89.38%. Number of household members, age of farmer, experience, education, credit access, training program are predictors of technical efficiency. Finally, joining associations or groups which is proxy variable of social capital also strongly affect technical efficiency. However, the result is very interesting and different with my expectation. In my study, the farmers who join more in Farmers’ Union, Union and other groups will produce less than that in the other farmers.