Production Efficiency of Rice Farms in Thailand and Cambodia: A Comparative Analysis of Ubon Ratchathani and Stung Treng Provinces

36 Pages Posted: 22 Jun 2016

See all articles by Trung Thanh Nguyen

Trung Thanh Nguyen

Leibniz Universität Hannover

Ulrike Grote

University of Bonn - Center for Development Research (ZEF); Leibniz Universität Hannover - Faculty of Economics and Management

Axel Ebers

Leibniz Universität Hannover - Institute for Environmental Economics and World Trade

Date Written: June 22, 2016

Abstract

Rice farmers in developing countries need to increase production efficiency in order to meet a growing rice demand. To identify and compare the determinants of rice production efficiency at different stages of economic development, a one-stage stochastic frontier model is applied to a cross-sectional dataset collected in 2013 of 623 households in Ubon Ratchathani (Thailand) and 407 households in Stung Treng (Cambodia). The results indicate that the average level of rice production efficiency is 72% in Thailand and 64% in Cambodia. There are a number of factors that commonly affect the production efficiency in both countries. These factors are the farm size, per capita income, amount of agricultural credit, degree of commercialization, and share of non-farm income. However, there are also a number of country-specific factors that are unique to the respective environments. These factors are the distance to fields, mechanization, agricultural assets, share of remittances, education of household heads, and distance to town in Thailand, and household size in Cambodia. These findings suggest that promoting the development of household capital, access to rural infrastructure as well as the specialization and commercialization of rice production would contribute to increasing production efficiency of rice farms in developing countries.

Keywords: Production efficiency, sustainable livelihoods, smallholders, Southeast Asia

Suggested Citation

Nguyen, Trung Thanh and Grote, Ulrike and Ebers, Axel, Production Efficiency of Rice Farms in Thailand and Cambodia: A Comparative Analysis of Ubon Ratchathani and Stung Treng Provinces (June 22, 2016). Available at SSRN: https://ssrn.com/abstract=2799159 or http://dx.doi.org/10.2139/ssrn.2799159

Trung Thanh Nguyen (Contact Author)

Leibniz Universität Hannover ( email )

Welfengarten 1
D-30167 Hannover, 30167
Germany

Ulrike Grote

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3, D-53113
Bonn
Germany

Leibniz Universität Hannover - Faculty of Economics and Management

Koenigsworther Platz 1
Hannover, 30167
Germany

Axel Ebers

Leibniz Universität Hannover - Institute for Environmental Economics and World Trade ( email )

Königsworther Platz 1
Hannover, 30167
Germany

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