Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam

Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-...

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Tác giả chính: Ho Quoc Thong
Đồng tác giả: Tuyet Hoa Niekdam
Định dạng: Journal Article
Thông tin xuất bản: Trường Đại học Kinh tế Tp. Hồ Chí Minh 2017
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Truy cập trực tuyến:http://digital.lib.ueh.edu.vn/handle/UEH/55274
http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=3d33b1b7-ac74-4ef0-9480-7964a96fa6df
http://doi.org/10.24311/jabes/2016.23.4.04
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record_format dspace
institution Đại học Kinh tế Thành phố Hồ Chí Minh
collection DSpaceUEH
topic Coffee
Credit
DakLak
Income diversification
Labor dependence
Technical efficiency
spellingShingle Coffee
Credit
DakLak
Income diversification
Labor dependence
Technical efficiency
Ho Quoc Thong
Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam
description Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-economic conditions affecting coffee production efficiency. This study examines relationships among income diversification, rural credit loan, labor dependence, and technical efficiency in coffee production through a face-to-face survey with participation of 143 coffee farming households conducted in Cu M’gar District, Dak Lak Province, Vietnam. The stochastic frontier model shows that the mean of technical efficiency scores is 0.64, and it also verifies the existence of inefficiency variation. Both Maximum Likelihood Estimate (MLE) and Feasible Generalized Least Square (FGLS) consistently indicate that a higher level of diversity in income sources negatively affects coffee production efficiency. Additionally, independence in labor resource for coffee farming may help farmers increase technical efficiency of coffee production. Credit loan has a positive and statistically significant relationship with technical efficiency of coffee production. These relationships hold especially true for smallholder coffee farms with ethnic minority household heads. The policy options of credit loan access, intensive investment in coffee production rather than diversification of coffee farmers’ income sources, and independent management strategies for labor sources are suggested as an integrated approach to improve technical efficiency in coffee production of smallholder coffee farms.
author2 Tuyet Hoa Niekdam
author_facet Tuyet Hoa Niekdam
Ho Quoc Thong
format Journal Article
author Ho Quoc Thong
author_sort Ho Quoc Thong
title Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam
title_short Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam
title_full Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam
title_fullStr Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam
title_full_unstemmed Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam
title_sort labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of cu m’gar district, dak lak province, vietnam
publisher Trường Đại học Kinh tế Tp. Hồ Chí Minh
publishDate 2017
url http://digital.lib.ueh.edu.vn/handle/UEH/55274
http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=3d33b1b7-ac74-4ef0-9480-7964a96fa6df
http://doi.org/10.24311/jabes/2016.23.4.04
work_keys_str_mv AT hoquocthong labordependenceincomediversificationruralcreditandtechnicalefficiencyofsmallholdercoffeefarmsacasestudyofcumgardistrictdaklakprovincevietnam
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spelling oai:localhost:UEH-552742021-09-21T07:34:14Z Labor dependence, income diversification, rural credit, and technical efficiency ofsmall-holder coffee farms: a case study of Cu M’gar district, Dak Lak province, Vietnam Ho Quoc Thong Tuyet Hoa Niekdam Coffee Credit DakLak Income diversification Labor dependence Technical efficiency Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-economic conditions affecting coffee production efficiency. This study examines relationships among income diversification, rural credit loan, labor dependence, and technical efficiency in coffee production through a face-to-face survey with participation of 143 coffee farming households conducted in Cu M’gar District, Dak Lak Province, Vietnam. The stochastic frontier model shows that the mean of technical efficiency scores is 0.64, and it also verifies the existence of inefficiency variation. Both Maximum Likelihood Estimate (MLE) and Feasible Generalized Least Square (FGLS) consistently indicate that a higher level of diversity in income sources negatively affects coffee production efficiency. Additionally, independence in labor resource for coffee farming may help farmers increase technical efficiency of coffee production. Credit loan has a positive and statistically significant relationship with technical efficiency of coffee production. These relationships hold especially true for smallholder coffee farms with ethnic minority household heads. The policy options of credit loan access, intensive investment in coffee production rather than diversification of coffee farmers’ income sources, and independent management strategies for labor sources are suggested as an integrated approach to improve technical efficiency in coffee production of smallholder coffee farms. 2017-09-14T11:02:25Z 2017-09-14T11:02:25Z 2016 Journal Article 1859 -1124 http://digital.lib.ueh.edu.vn/handle/UEH/55274 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=3d33b1b7-ac74-4ef0-9480-7964a96fa6df http://doi.org/10.24311/jabes/2016.23.4.04 Journal of Economic Development JED, Vol.23(4) Aigner, D. J., Lovell, C. A. K., & Schmidt, P.(1977). Formulation and estimation of stochastic frontier production functionmodels. Journal of Econometrics, 6(1), 21–37. Alvarez, A., & Arias, C.(2004). Technical efficiency and farm size: A conditional analysis. AgriculturalEconomics, 30(3), 241–250.http://doi.org/10.1111/j.1574-0862.2004.tb00192.x Battese, G. E. 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