Technical Efficiency of Smallholder Banana Production: A case study in Vietnam
Authors: Hoang Van Hung, Nguyen Van Huong, Le Thi Thuong , Thai Thi Kim Oanh , Nguyen Van Chuong , Nguyen Cong Tiep , Thai Van Ha , Nguyen Thi Luong
AgBioForum
: 24 : 58-64
Publishing year: 2/2022
Bananas are considered one of the leading trading crops due to
their high demand all over the globe. Since the increasing
demand leads to the expansion of global import, the existing
literature is in dire need of updating, especially from the
producing economies that fall in the category of developing
nations. The study, thus, intends to estimate the critical efficiency
of said area. Along with it, the study aims to determine the
elements of banana production in the context of Vietnam using
a stochastic frontier approach and technical efficiency technique.
The sample of the study is the province of Vietnam named Hung
Yen, and it made sure to collect the data from 160 farmers in
2022. Results of the study reveal that the farmers' technical
efficiency fluctuates between the range of 89.68- 97.81%.
However, the average technical efficiency of banana farmers
was reported to be 95.92%. From the result, it is gauged that
factors such as potassium, manure, distance, capital, and
training showed positive signs at a 0.01 significance level. Also,
the education and area coefficient show a positive sign at a 0.05
significance level. Finally, distance and district variables, which
were the dummy variable, show a negative sign at 0.01 and 0.05
significance levels, respectively.
Technical efficiency, productivity, and Stochastic Frontier Production Function