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The Impact of Rural Financial Services on the Technical Efficiency of Rice Farmers in the Upper North of Thailand

Author

Listed:
  • Chaovanapoonphol, Yaovarate
  • Battese, George E.
  • Chang, Hui-Shung (Christie)

Abstract

After the financial crisis in 1997, the Thai government established and promoted financial services to rural areas to improve the quality of life of rural households and increase the productivity and technical efficiency of farmers. This paper seeks to investigate the impact of financial services on the technical efficiency of rice farmers. Stochastic frontier production functions are estimated using the survey data collected from 656 rice farmers in 2004. The average technical efficiencies of rice farmers were 79 per cent. Factors affecting the technical inefficiencies of rice farmers were land, amount of loans used for major rice production, experience, formal education and age. Hence, government policy that would improve the level of education of farmers and support rural financial services to farmers would lead to a significant increase in the level of technical efficiency of major rice production.

Suggested Citation

  • Chaovanapoonphol, Yaovarate & Battese, George E. & Chang, Hui-Shung (Christie), 2005. "The Impact of Rural Financial Services on the Technical Efficiency of Rice Farmers in the Upper North of Thailand," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137811, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare05:137811
    DOI: 10.22004/ag.econ.137811
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    References listed on IDEAS

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    Cited by:

    1. Amurtiya Michael & Yuniyus Dengle Giroh & Mark Polycarp & Zubairu Emmanuel Ashindo, 2018. "Analysis of Rural Farm Households' Access to Formal Agricultural Credit in Yola South Local Government Area, Adamawa State, Nigeria," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(4), pages 947-954.
    2. Enete, A.A. & Otitoju, M.A. & Ihemezie, E.J., 2015. "The choice of climate change adaptation strategies among food crop farmers in Southwest Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 5(1).
    3. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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