Profit Efficiency of Rice Farms in Wet-Season Lowlands in Champhone District, Savannakhet Province, Lao PDR

Sengphachan Khounthikoumane, Jae Bong Chang and Yoonsuk Lee
Additional contact information
Sengphachan Khounthikoumane: Department of Agricultural & Resource Economics, Kangwon National University, Chuncheon 24341, Korea
Jae Bong Chang: Department of Food Marketing and Safety, Konkuk University, Seoul 05029, Korea
Yoonsuk Lee: Department of Agricultural & Resource Economics, Kangwon National University, Chuncheon 24341, Korea

Agriculture, 2021, vol. 11, issue 7, 1-10

Abstract: This study analyzed factors affecting profit efficiency of rice farms in wet-season lowlands in the Champhone District of Savannakhet Province in the Lao People’s Democratic Republic based on a farmer’s decision to maximize profits. The profit efficiency approach has an advantage in that it provides insights into both inputs and outputs. To analyze profit efficiency, the stochastic production frontier model with assumptions about the time period and types of inputs was applied in the study. The study found similar results to previous studies related to efficiency measurements using a stochastic frontier analysis. Rice production and selling prices have positive signs with respect to the rate of return; however, costs of labor, seed, irrigation, fertilizers, and maintenance have negative signs with respect to the rate of revenue. However, the results from the inefficiency model showed the different role of education. The previous studies found that education level did not play an important role in improving rice productivity in Laos, however, the present study found that education level played a significant role in increasing profits.

Keywords: stochastic frontier model; profits efficiency; wet-season lowland rice (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2077-0472/11/7/657/pdf (application/pdf)
https://www.mdpi.com/2077-0472/11/7/657/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:11:y:2021:i:7:p:657-:d:592833

Access Statistics for this article

Agriculture is currently edited by Ms. Leda Xuan

More articles in Agriculture from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().