Details
| Original language | English |
|---|---|
| Pages (from-to) | 780-791 |
| Number of pages | 12 |
| Journal | Economic Analysis and Policy |
| Volume | 77 |
| Early online date | 24 Dec 2022 |
| Publication status | Published - Mar 2023 |
Abstract
Enhancing rice production efficiency in developing countries is important to improve the livelihoods of farmers and to ensure global food security for a growing population. Despite significant progress in recent decades, rice production is facing multiple challenges from climate change to the increasing competition for land, labor and capital from urbanization and industrialization. Given the fact that Vietnamese farmers often suffer from shocks and financial capital constraints, our paper aims to (i) investigate the impact of credit and shocks on rice production efficiency, and to (ii) examine the role of credit in mitigating the impact of shocks. Our findings show that weather shocks and land fragmentation are major sources of the inefficiency. Meanwhile, livestock, farm mechanization, and education are factors promoting rice production efficiency. Our results also show that access to credit plays a significant role in mitigating the negative impact of weather shocks. Our paper calls for more assistance and support to farmers in mitigating the severe effects of weather shocks, in particular via the promotion of rural credit markets. In addition, the encouragement of farm mechanization, land defragmentation, livestock farming, and the improvement of rural education should be given high priority to improve rice production efficiency.
Keywords
- Correlated-random effects, Credit, Efficiency, Rice, Shocks, Stochastic frontier, Vietnam
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Economics, Econometrics and Finance(all)
- Economics, Econometrics and Finance (miscellaneous)
Sustainable Development Goals
Cite this
- Standard
- Harvard
- Apa
- Vancouver
- BibTeX
- RIS
In: Economic Analysis and Policy, Vol. 77, 03.2023, p. 780-791.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Credit, shocks and production efficiency of rice farmers in Vietnam
AU - Nguyen, Thanh-Tung
AU - Nguyen, Trung Thanh
AU - Grote, Ulrike
N1 - Funding Information: We acknowledge the financial support of the German Research Foundation (DFG FOR 756; Project number: 23753993 , and 283672937 ) and thank the farmers of the surveyed provinces for their support and cooperation.
PY - 2023/3
Y1 - 2023/3
N2 - Enhancing rice production efficiency in developing countries is important to improve the livelihoods of farmers and to ensure global food security for a growing population. Despite significant progress in recent decades, rice production is facing multiple challenges from climate change to the increasing competition for land, labor and capital from urbanization and industrialization. Given the fact that Vietnamese farmers often suffer from shocks and financial capital constraints, our paper aims to (i) investigate the impact of credit and shocks on rice production efficiency, and to (ii) examine the role of credit in mitigating the impact of shocks. Our findings show that weather shocks and land fragmentation are major sources of the inefficiency. Meanwhile, livestock, farm mechanization, and education are factors promoting rice production efficiency. Our results also show that access to credit plays a significant role in mitigating the negative impact of weather shocks. Our paper calls for more assistance and support to farmers in mitigating the severe effects of weather shocks, in particular via the promotion of rural credit markets. In addition, the encouragement of farm mechanization, land defragmentation, livestock farming, and the improvement of rural education should be given high priority to improve rice production efficiency.
AB - Enhancing rice production efficiency in developing countries is important to improve the livelihoods of farmers and to ensure global food security for a growing population. Despite significant progress in recent decades, rice production is facing multiple challenges from climate change to the increasing competition for land, labor and capital from urbanization and industrialization. Given the fact that Vietnamese farmers often suffer from shocks and financial capital constraints, our paper aims to (i) investigate the impact of credit and shocks on rice production efficiency, and to (ii) examine the role of credit in mitigating the impact of shocks. Our findings show that weather shocks and land fragmentation are major sources of the inefficiency. Meanwhile, livestock, farm mechanization, and education are factors promoting rice production efficiency. Our results also show that access to credit plays a significant role in mitigating the negative impact of weather shocks. Our paper calls for more assistance and support to farmers in mitigating the severe effects of weather shocks, in particular via the promotion of rural credit markets. In addition, the encouragement of farm mechanization, land defragmentation, livestock farming, and the improvement of rural education should be given high priority to improve rice production efficiency.
KW - Correlated-random effects
KW - Credit
KW - Efficiency
KW - Rice
KW - Shocks
KW - Stochastic frontier
KW - Vietnam
UR - http://www.scopus.com/inward/record.url?scp=85145696791&partnerID=8YFLogxK
U2 - 10.1016/j.eap.2022.12.018
DO - 10.1016/j.eap.2022.12.018
M3 - Article
AN - SCOPUS:85145696791
VL - 77
SP - 780
EP - 791
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
SN - 0313-5926
ER -