Date
2020-12-24Metadata
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Aufsatz
Does the non-farm sector affect production efficiency of the Vietnamese agricultural sector? A stochastic frontier production approach
Abstract
This study examines the impact of the non-farm sector on farm value-added and production efficiency in the Vietnamese agricultural sector by using data from the Vietnam Household Living Standard Survey 2012. Production function and stochastic frontier production analysis is used to determine the impact, and the instrumental variables method is applied to address endogeneity. We find that the Vietnamese non-farm sector has a positive effect on both farm value-added and efficiency. This result indicates that income from non-farm activities relaxes liquidity constraints and farmers can reinvest this capital in agricultural production. Our result provides evidence of the important role played by the non-farm sector in relaxing credit constraints and enhancing agricultural production efficiency for developing countries.
Citation
In: Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS) Vol. 121 / No. 2 (2020-12-24) , S. 289-301 ; EISSN 2363-6033Collections
Vol 121, No 2 (2020) (Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS))Citation
@article{doi:10.17170/kobra-202011262277,
author={Nguyen, Hang Thi Thuy and Kondo, Takumi},
title={Does the non-farm sector affect production efficiency of the Vietnamese agricultural sector? A stochastic frontier production approach},
journal={Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS)},
year={2020}
}
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2021-01-06T09:40:20Z 2021-01-06T09:40:20Z 2020-12-24 doi:10.17170/kobra-202011262277 http://hdl.handle.net/123456789/12386 eng Namensnennung 4.0 International http://creativecommons.org/licenses/by/4.0/ non-farm sector production efficiency agricultural production endogeneity Vietnamese agriculture non-farm activities instrumental variables 630 Does the non-farm sector affect production efficiency of the Vietnamese agricultural sector? A stochastic frontier production approach Aufsatz This study examines the impact of the non-farm sector on farm value-added and production efficiency in the Vietnamese agricultural sector by using data from the Vietnam Household Living Standard Survey 2012. Production function and stochastic frontier production analysis is used to determine the impact, and the instrumental variables method is applied to address endogeneity. We find that the Vietnamese non-farm sector has a positive effect on both farm value-added and efficiency. This result indicates that income from non-farm activities relaxes liquidity constraints and farmers can reinvest this capital in agricultural production. Our result provides evidence of the important role played by the non-farm sector in relaxing credit constraints and enhancing agricultural production efficiency for developing countries. open access Nguyen, Hang Thi Thuy Kondo, Takumi Vietnam Landwirtschaft Ländlicher Raum Endogene Variable Agrarproduktion publishedVersion EISSN 2363-6033 No. 2 Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS) 289-301 Vol. 121 false
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