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Determinants of profit efficiency among peanut farming households in Tra Vinh province, Vietnam

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  • Nguyen Huu Dang

    (Can Tho University, Vietnam)

Abstract

This study is aiming to identify profit efficiency and its determinants among peanut farming households in Tra Vinh province, Vietnam, based on the data collected from 182 peanut farming households in three districts of Tra Vinh province. The Cobb-Douglas stochastic frontier profit function incorporating profit inefficiency effects was employed to analyze the data, using the Frontier 4.1. The results revealed that the profit efficiency was ranged between 29.80 to 96.76 percent, an average of 59.06 percent. Significant factors that were found negative affect the peanut farm profit were prices of fertilizer, pesticide, wage rate; whereas, the price of seed and land area (fixed factor) were found negative effect the peanut farm profit. Significant determinants that were found positive effect the profit efficiency of peanut farmers were gender, education attainment, peanut farming experience, farm size, credit access, training, and farmer’s association membership.

Suggested Citation

  • Nguyen Huu Dang, 2017. "Determinants of profit efficiency among peanut farming households in Tra Vinh province, Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 7(2), pages 15-23.
    • Handle: RePEc:bjw:econen:v:7:y:2017:i:2:p:15-23
    DOI: 10.46223/HCMCOUJS.econ.en.7.2.182.2017
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    References listed on IDEAS

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    1. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    2. Abdulai, Awudu & Huffman, Wallace, 1998. "An Examination of Profit Inefficiency of Rice Farmers in Northern Ghana," Staff General Research Papers Archive 1380, Iowa State University, Department of Economics.
    3. Mubarik Ali & John C. Flinn, 1989. "Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 303-310.
    4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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