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Analyzing the economies of crop diversification in rural Vietnam using an input distance function

Huy Quynh Nguyen

Agricultural Systems, 2017, vol. 153, issue C, 148-156

Abstract: The farming system in Vietnam is being transformed by integration between a set of cash crops and main food cropping operations. This transformation into diversified farming systems, where smallholders have a production base in rice, can affect output complementarity, technical efficiency, and performance of farms. This study aims to evaluate the economies of crop diversification in rural Vietnam by using the approach of the input distance function. The empirical results reveal that slightly increasing returns to scale are evident in Vietnam's multiple crop production. In addition, the increase in rice production reduces the marginal utilization of inputs for producing other crops. Significant output complementarity is found between rice production and other crops. This finding also implies the potential presence of economies of scope.

Keywords: Crop diversification; Input distance function; Stochastic frontier; Technical efficiency; Economies of scale (search for similar items in EconPapers)
JEL-codes: O12 O13 O33 (search for similar items in EconPapers)
Date: 2017
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