Economic Efficiency And Its Determinants In Chu-Mango Farming In The Mekong Delta, Vietnam

Abstract

The paper employed a Cobb-Douglas stochastic frontier profit function to measure the level of economic efficiency (EE) and its determinants. The structured questionnaire was used to collect data from 522 of sampling observations (212, 171, and 139 observations for seasons 1, 2, and 3, respectively) randomly selected from designated locations in the Mekong Delta (MD). The study established a mean EE of 36.2%, 31.9%, and 35.9% in seasons 1, 2, and 3, respectively. The study identifiedthe land area and wrapping bag to be positively and significantly influencing on profit efficiency among three seasons. Besides, the results of the analysis indicated that labour price was important factor in season 3 at the 5% significance level, and price of the root fertiliser, leaf fertiliser and labour affected mainly on profit efficiency in season 2 at the 1% significance level. By contrast, the variable of the fungicide price in season 2, and the root fertiliser price in season 3 were negative factors on profit efficiency at the 1% significance level. Particularly, policy solutions were recommended that farmers should design Chu-mango gardens with appropriate trees density as well as encourage gardeners to use bags for wrapping mango fruits in farming in order to increase profit efficiency. Specially, Chu-mango growers should be empowered in land area acquisition to applied advanced technology in large-scale production more effectively.