Profit Efficiency and Rice Variety Choice in Rice Farming in Vietnam: A Stochastic Frontier Analysis Approach

Rice farming is the main livelihood for many Vietnamese farmers; however, rice farming incomes remain low. This is partly explained by the inefficient use or allocation of production resources. This thesis investigates the causes of technical and profit inefficiency, including farmer characteristics and choice of rice variety, using advanced econometric models (e.g., Bayesian true random-effects, Bayesian generalized true random-effects, sample selection stochastic frontier, and stochastic metafrontier models). The thesis finds that there is potential for rice farmers to increase incomes if they overcome technical and profit inefficiencies, and adopt high quality rice varieties.