Enhancing Productivity and Resource Conservation by Eliminating Inefficiency of Thai Rice Farmers: A Zero Inefficiency Stochastic Frontier Approach



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https://www.mdpi.com/2071-1050/9/5/770/htm
DOI: 
10.3390/su9050770
Licensing of resource: 
Creative Commons Attribution (CC BY)
Type: 
journal article
Journal: 
Sustainability
Number: 
5
Volume: 
9
Author(s): 
Liu J.
Rahman S.
Sriboonchitta S.
Wiboonpongse A.
Publisher(s): 
Description: 

The study first identified fully efficient farmers and then estimated technical efficiency of inefficient farmers, identifying their determinants by applying a Zero Inefficiency Stochastic Frontier Model (ZISFM) on a sample of 300 rice farmers from central-northern Thailand. Next, the study developed scenarios of potential production increase and resource conservation if technical inefficiency was eliminated. Results revealed that 13% of the sampled farmers were fully efficient, thereby justifying the use of our approach. The estimated mean technical efficiency was 91%, implying that rice production can be increased by 9%, by reallocating resources. Land and labor were the major productivity drivers. Education significantly improved technical efficiency.

Publication year: 
2017
Keywords: 
technical efficiency
Zero Inefficiency Stochastic Frontier approach
rice production
Thailand