[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v77y2023icp780-791.html
   My bibliography  Save this article

Credit, shocks and production efficiency of rice farmers in Vietnam

Author

Listed:
  • Nguyen, Thanh-Tung
  • Nguyen, Trung Thanh
  • Grote, Ulrike
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.

Suggested Citation

  • Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Credit, shocks and production efficiency of rice farmers in Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 780-791.
  • Handle: RePEc:eee:ecanpo:v:77:y:2023:i:c:p:780-791
    DOI: 10.1016/j.eap.2022.12.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592622002260
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eap.2022.12.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gautam,Madhur & Ahmed,Mansur, 2018. "Too small to be beautiful? : the farm size and productivity relationship in Bangladesh," Policy Research Working Paper Series 8387, The World Bank.
    2. Ambrosius, Christian & Cuecuecha, Alfredo, 2013. "Are Remittances a Substitute for Credit? Carrying the Financial Burden of Health Shocks in National and Transnational Households," World Development, Elsevier, vol. 46(C), pages 143-152.
    3. Jin Yang & Hui Wang & Songqing Jin & Kevin Chen & Jeffrey Riedinger & Chao Peng, 2016. "Migration, local off-farm employment, and agricultural production efficiency: evidence from China," Journal of Productivity Analysis, Springer, vol. 45(3), pages 247-259, June.
    4. Mishra, Ashok K. & Bairagi, Subir & Velasco, Maria Lourdes & Mohanty, Samarendu, 2018. "Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia," Land Use Policy, Elsevier, vol. 79(C), pages 215-222.
    5. Nusrat Abedin Jimi & Plamen V. Nikolov & Mohammad Abdul Malek & Subal Kumbhakar, 2019. "The effects of access to credit on productivity: separating technological changes from changes in technical efficiency," Journal of Productivity Analysis, Springer, vol. 52(1), pages 37-55, December.
    6. Tom Kompas & Tuong Nhu Che & Hoa Thi Minh Nguyen & Ha Quang Nguyen, 2012. "Productivity, Net Returns, and Efficiency: Land and Market Reform in Vietnamese Rice Production," Land Economics, University of Wisconsin Press, vol. 88(3), pages 478-495.
    7. Nguyen, Trung Thanh & Do, Truong Lam & Parvathi, Priyanka & Wossink, Ada & Grote, Ulrike, 2018. "Farm production efficiency and natural forest extraction: Evidence from Cambodia," Land Use Policy, Elsevier, vol. 71(C), pages 480-493.
    8. Becchetti, Leonardo & Castriota, Stefano, 2011. "Does Microfinance Work as a Recovery Tool After Disasters? Evidence from the 2004 Tsunami," World Development, Elsevier, vol. 39(6), pages 898-912, June.
    9. Mikkel Barslund & Finn Tarp, 2008. "Formal and Informal Rural Credit in Four Provinces of Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 485-503, April.
    10. Khanal, Uttam & Wilson, Clevo & Hoang, Viet-Ngu & Lee, Boon, 2018. "Farmers' Adaptation to Climate Change, Its Determinants and Impacts on Rice Yield in Nepal," Ecological Economics, Elsevier, vol. 144(C), pages 139-147.
    11. Karunarathna, Muditha & Wilson, Clevo, 2017. "Agricultural biodiversity and farm level technical efficiency: An empirical investigation," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 38-46.
    12. Bob Baulch & Hung T. Pham & Barry Reilly, 2012. "Decomposing the Ethnic Gap in Rural Vietnam, 1993--2004," Oxford Development Studies, Taylor & Francis Journals, vol. 40(1), pages 87-117, June.
    13. Carmen Kislat, 2015. "Why are Informal Loans Still a Big Deal? Evidence from North-east Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 51(5), pages 569-585, May.
    14. Zelalem Yilma & Anagaw Mebratie & Robert Sparrow & Degnet Abebaw & Marleen Dekker & Getnet Alemu & Arjun S. Bedi, 2014. "Coping with shocks in rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 1009-1024, July.
    15. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 143-172, February.
    16. Kimty Seng, 2018. "Rethinking the Effects of Microcredit on Household Welfare in Cambodia," Journal of Development Studies, Taylor & Francis Journals, vol. 54(9), pages 1496-1512, September.
    17. Johannes Sauer & Matthew Gorton & Sophia Davidova, 2015. "Migration and farm technical efficiency: evidence from Kosovo," Agricultural Economics, International Association of Agricultural Economists, vol. 46(5), pages 629-641, September.
    18. Rosemary E. Isoto & Abdoul G. Sam & David S. Kraybill, 2017. "Uninsured Health Shocks and Agricultural Productivity among Rural Households: The Mitigating Role of Micro-credit," Journal of Development Studies, Taylor & Francis Journals, vol. 53(12), pages 2050-2066, December.
    19. Daniel Ayalew Ali & Klaus Deininger & Marguerite Duponchel, 2014. "Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 649-665, May.
    20. Nguyen, Duc Loc & Grote, Ulrike & Nguyen, Trung Thanh, 2019. "Migration, crop production and non-farm labor diversification in rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 175-187.
    21. Huy, Hoang Trieu & Nguyen, Trung Thanh, 2019. "Cropland rental market and farm technical efficiency in rural Vietnam," Land Use Policy, Elsevier, vol. 81(C), pages 408-423.
    22. Rasmus Heltberg & Niels Lund, 2009. "Shocks, Coping, and Outcomes for Pakistan's Poor: Health Risks Predominate," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 889-910.
    23. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.
    24. Tran, Duc & Vu, Ha Thu & Goto, Daisaku, 2022. "Agricultural land consolidation, labor allocation and land productivity: A case study of plot exchange policy in Vietnam," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 455-473.
    25. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
    26. Bernhard Brümmer & Jens‐Peter Loy, 2000. "The Technical Efficiency Impact of Farm Credit Programmes: A Case Study of Northern Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 405-418, September.
    27. Catherine Guirkinger & Stephen R. Boucher, 2008. "Credit constraints and productivity in Peruvian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 295-308, November.
    28. Uttam Khanal & Clevo Wilson & Boon Lee & Viet-Ngu Hoang, 2018. "Do climate change adaptation practices improve technical efficiency of smallholder farmers? Evidence from Nepal," Climatic Change, Springer, vol. 147(3), pages 507-521, April.
    29. Md. Abdur Rashid Sarker & Khorshed Alam & Jeff Gow, 2014. "Assessing the effects of climate change on rice yields: An econometric investigation using Bangladeshi panel data," Economic Analysis and Policy, Elsevier, vol. 44(4), pages 405-416.
    30. Timothy G. Taylor & H. Evan Drummond & Aloisio T. Gomes, 1986. "Agricultural Credit Programs and Production Efficiency: An Analysis of Traditional Farming in Southeastern Minas Gerais, Brazil," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 110-119.
    31. Aljar Meesters, 2014. "A note on the assumed distributions in stochastic frontier models," Journal of Productivity Analysis, Springer, vol. 42(2), pages 171-173, October.
    32. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
    33. Hoang, Viet-Ngu & Vu, Duc-Cuong, 2021. "On the effects of trade on multidimensional deprivation: Evidence from Vietnam’s rice growing households," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 476-485.
    34. Truong Lam Do & Trung Thanh Nguyen & Ulrike Grote, 2019. "Livestock Production, Rural Poverty, and Perceived Shocks: Evidence from Panel Data for Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 55(1), pages 99-119, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Weather shocks, credit and production efficiency of rice farmers in Vietnam," TVSEP Working Papers wp-017, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    2. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 143-172, February.
    3. Do, Manh Hung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 157-173.
    4. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Do, Manh Hung & Nguyen, Duy Linh & Grote, Ulrike, 2022. "Shocks, agricultural productivity, and natural resource extraction in rural Southeast Asia," World Development, Elsevier, vol. 159(C).
    5. Manh Hung Do & Trung Thanh Nguyen & Ulrike Grote, 2022. "Is land consolidation policy a solution for rice production and agricultural transformation in Vietnam?," TVSEP Working Papers wp-028, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    6. Nguyen, Giang & Nguyen, Trung Thanh, 2020. "Exposure to weather shocks: A comparison between self-reported record and extreme weather data," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 117-138.
    7. Thanh‐Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Internet use and agricultural productivity in rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1309-1326, August.
    8. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Grote, Ulrike, 2020. "Multiple shocks and households' choice of coping strategies in rural Cambodia," Ecological Economics, Elsevier, vol. 167(C).
    9. Yoro Diallo & Sébastien Marchand & Etienne Espagne, 2019. "Impacts of extreme events on technical efficiency in Vietnamese agriculture," CIRED Working Papers halshs-02080285, HAL.
    10. Nusrat Abedin Jimi & Plamen V. Nikolov & Mohammad Abdul Malek & Subal Kumbhakar, 2019. "The effects of access to credit on productivity: separating technological changes from changes in technical efficiency," Journal of Productivity Analysis, Springer, vol. 52(1), pages 37-55, December.
    11. Nguyen, Trung Thanh & Do, Truong Lam & Parvathi, Priyanka & Wossink, Ada & Grote, Ulrike, 2018. "Farm production efficiency and natural forest extraction: Evidence from Cambodia," Land Use Policy, Elsevier, vol. 71(C), pages 480-493.
    12. Khanal, Uttam & Wilson, Clevo & Rahman, Sanzidur & Lee, Boon & Hoang, Vincent, 2020. "Smallholder farmers’ adaptation to climate change and its potential contribution to UN’s sustainable development goals of zero hunger and no poverty," MPRA Paper 106917, University Library of Munich, Germany, revised 07 Sep 2020.
    13. Selina Bruns & Bernhard Dalheimer & Oliver Musshoff, 2022. "The effect of cognitive function on the poor's economic performance: Evidence from Cambodian smallholder farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 468-480, May.
    14. Le Phuong Xuan Dang & Viet-Ngu Hoang & Son Hong Nghiem & Clevo Wilson, 2023. "Social capital and informal credit access: empirical evidence from a Vietnamese household panel survey," Empirical Economics, Springer, vol. 65(1), pages 311-340, July.
    15. Marcello Pagnini & Paola Rossi & Valerio Vacca & Carmen Kislat & Lukas Menkhoff & Doris Neuberger, 2017. "Credit Market Structure and Collateral in Rural Thailand," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(3), pages 587-632, November.
    16. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    17. Nusrat Abedin Jimi & Plamen Nikolov & Mohammad Abdul Malek & Subal Kumbhakar, 2020. "The Effects of Access to Credit on Productivity Among Microenterprises: Separating Technological Changes from Changes in Technical Efficiency," Papers 2006.03650, arXiv.org.
    18. Balana, Bedru & Oyeyemi, Motunrayo, 2021. "Credit Constraints and Adoption of Agricultural Technologies in Developing Countries? Evidence from Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315347, International Association of Agricultural Economists.
    19. Lampach, Nicolas & To-The, Nguyen & Nguyen-Anh, Tuan, 2021. "Technical efficiency and the adoption of multiple agricultural technologies in the mountainous areas of Northern Vietnam," Land Use Policy, Elsevier, vol. 103(C).
    20. Qianqian Zhang & Tao Li & Xiongwei Tan & Jianzhong Yan, 2023. "Protecting Poor Rural Households from Health Shocks: Poverty Alleviation Practices in Chongqing, China," Land, MDPI, vol. 12(5), pages 1-22, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:77:y:2023:i:c:p:780-791. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.