The inefficiency of Vietnamese prawn-rice rotational crops: a slacks-based data envelopment analysis

Abstract

Purpose

The purpose of this paper is to investigate the input- and output-specific technical inefficiency of Vietnamese prawn-rice rotational crops (PRRC) and to identify the impacts of the socio-economic characteristics of farmers and farms on these technical inefficiencies.

Design/methodology/approach

This study first used a Russell-type (input-output) directional distance function to estimate the input- and output-specific technical inefficiency. Second, it applied a bootstrap truncated regression to analyze the factors influencing these technical inefficiencies. Data were gathered through a survey among 94 farmers, from Ben Tre and Kien Giang provinces, the two popular PRRC areas in the Mekong Delta.

Findings

Results show that Vietnamese PRRC farmers could reduce the water surface area by 3%, the use of seedlings by 15%, labor by 16%, fertilizers by 26%, and the use of others by 24%, while simultaneously increasing the revenue of farming system by 57% relative to the variable returns to scale (VRS) frontier. Farmers with more years of experience are generally better in managing the use of seedlings and in improvement of revenue. Farmers in Kien Giang province are more efficient in achieving revenue of the PRRC farming system than farmers in Ben Tre province.

Research limitations/implications

Outcomes of this study are useful to identify strategies in minimizing the use of inputs while simultaneously maximizing PRRC production.

Originality/value

This paper relates to the comparison of two mostly different ecological zones, being the dominant production areas of PRRC, in which, Kien Giang represents the western part, while Ben Tre is in the eastern part of the Vietnam’s Mekong Delta. The findings not only expand the current understanding but also suggest various meaningful research questions regarding the development of Vietnamese PRRC under the impacts of climate change. The study also contributes to the literature on examining the input- and output-specific technical inefficiencies and influencing factors.

Citation

Pham, T.A.N., Loc, H.H., Tran, D.D. and Quan, N.H. (2021), "The inefficiency of Vietnamese prawn-rice rotational crops: a slacks-based data envelopment analysis", Journal of Agribusiness in Developing and Emerging Economies, Vol. 11 No. 1, pp. 60-71. https://doi.org/10.1108/JADEE-08-2019-0120