An Analysis on the Factors Affecting Rice Production Efficiency in Myanmar

Abstract

The objective of this study is to obtain a better understanding of the current rice production condition in Myanmar through efficiency analysis, especially, to examine the impact of farm mechanization on Myanmar rice production efficiency. For representation of efficiency and the determinants, this paper uses both the data envelopment analysis (DEA) and the stochastic frontier approach (SFA) with variable returns to scale on Myanmar rice production. The efficiency of the rice production was estimated and subsequently the determinants factors were investigated based on the estimated efficiency level of these sample farmers. The empirical evidence finds that farm mechanical tools significantly improve the Myanmar rice production efficiency.

Keywords: Myanmar, Rice Farming, Farm Mechanization, Production Efficiency, Data Envelopment Analysis, Stochastic Frontier Approach

JEL Classification: D24, N55, O13