Farm Production Efficiency and Natural Forest Extraction in Cambodia

39 Pages Posted: 15 Aug 2018

Date Written: July 31, 2018


Farm production and natural forest extraction remain principal livelihood strategies of local people in many rural areas of the developing world. In this paper, we apply stochastic frontier analysis to evaluate farm production efficiency and simultaneous equations modelling to estimate the interrelationship between farm production efficiency and natural forest extraction. We use a two-year panel dataset of 430 rural households in Stung Treng province of Cambodia. We find that natural forest extraction is decreasing in farm production efficiency. Our results suggest that improving farm production efficiency, via the promotion of rural education and privatization of farm land, should be considered an integral component of natural forest conservation policy.

Keywords: rural livelihood; non-separability; stochastic frontier analysis; simultaneous equations model; panel data; instrumental variable

Suggested Citation

Nguyen, Trung Thanh, Farm Production Efficiency and Natural Forest Extraction in Cambodia (July 31, 2018). Available at SSRN: or

Trung Thanh Nguyen (Contact Author)

Leibniz Universit├Ąt Hannover ( email )

Welfengarten 1
D-30167 Hannover, 30167

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