Abstract
Rice production in the Mekong Delta region accounts for more than 50% of Vietnam's total paddy production and 90% of its rice export volume. Therefore, increasing the efficiency of rice production systems and enhancing the comparative advantage of Vietnam's rice industry have been an important focus area for policy makers and researchers for many years. Access to has been identified as a key factor for improving rice production. This fact is validated in this study by considering the production and technical efficiency levels of rice production for a sample of farmers in the Mekong Delta. The study focuses particularly on the effects of both formal and informal credits on production levels and production efficiency by using a Stochastic frontier analysis and a quantile regression. By using the data from survey 300 rice production farmers in Mekong Delta in 2014, the results confirm the positive influence of on production and production efficiency. Both formal and informal appears to be important. The findings also imply that in order to improve the rice production outcomes, various possibles policy recommendation needed to be considered such as expansion of rura l systems, establishment more branches of agricultural and community banks, settlement the savings mobilization programmes and provision the credit plus services to the banks customers.
Highlights
Since Vietnam launched its innovation policy in 1986, the government has recognized the significant role played by agriculture
This paper investigates whether the effect of credit on production levels by applying a quantile regression, and the influence of credit access on rice efficiency levels by using a stochastic frontier analyse
This paper investigates the technical efficiencies and yields of rice farmers in the MD of Vietnam by using Stochastic Frontier Analysis (SFA) and quantile regressions
Summary
Since Vietnam launched its innovation policy in 1986, the government has recognized the significant role played by agriculture It has liberalized rice and agricultural input markets and implemented policies to promote the cultivation of high-yielding crop varieties. In 2010, it exported as much as 6.88 million tons for 3.23 billion US dollars, up by 15.4% in volume and 21.2% from the previous year (GSO, 2010). These results were achieved with widely applied modern rice technology, resulting in the widespread adoption of high yielding modern rice varieties, whose use increased from 17% in 1980 to nearly 90% in 2000 These results were achieved with widely applied modern rice technology, resulting in the widespread adoption of high yielding modern rice varieties, whose use increased from 17% in 1980 to nearly 90% in 2000 (Ut and Kajisa, 2006, pp. 167-189)
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