Abstract

This research study employs bootstrap data envelopment analysis and the metafrontier approach to measure and compare the technical efficiency of rice production activities across the regions of Vietnam. Using the metafrontier approach as a common production technology is more effective when wishing to compare relative technical efficiency levels across regions, those which may employ a variety of production technologies. The results of this study reflect the fact that technical efficiency levels vary more across regions when measured with respect to regional frontiers than when using the metafrontier approach. The study finds technical efficiency scores to be high when using regional frontier measurements, but lower when using the metafrontier approach. When using the metafrontier to adjust differences across regional frontiers, while the Mekong River Delta – the main rice producing region in Vietnam – has the highest efficiency, the Red River Delta – which is the second region in terms of rice production – has quite low efficiency scores when compared to some other regions in the country. One of the key findings of this study is that measuring and comparing the technical efficiency of rice production across different regions should not be carried out for individual regions alone, but for all regions.

Highlights

  • Vietnam is one of the most important rice producers in the world, and its agricultural-based economy depends greatly on the efficiency of rice production activities, which take place throughout the country, including in the following eight regions: the Red River Delta, the northeast, northwest, north central coast, south central coast, central highlands, southeast and the Mekong River Delta

  • The results of this study reflect the fact that technical efficiency levels vary more across regions when measured with respect to regional frontiers than when using the metafrontier approach

  • Paired-sample t-tests were conducted to test the H0 hypotheses, by comparing the technical efficiency scores when measured with respect to regional frontiers and against the metafrontier, using variable returns to scale as described in the last column of Table 1

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Summary

Introduction

Vietnam is one of the most important rice producers in the world, and its agricultural-based economy depends greatly on the efficiency of rice production activities, which take place throughout the country, including in the following eight regions: the Red River Delta, the northeast, northwest, north central coast, south central coast, central highlands, southeast and the Mekong River Delta. Among these regions, the Red River and Mekong River Delta areas are the two largest rice producing regions, and especially the Mekong River Delta, which contributes over 50% of domestic rice production annually and 90% of rice exports. To carry out a comparison of technical efficiency levels across different regions in Vietnam would pose a particular challenge, because regional differences in the rice production technologies applied can lead to biased results

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