Regional differences in measuring the technical efficiency of rice production in Vietnam : a metafrontier approach

Abstract

This research study employs bootstrap data envelopment analysis and the metafrontier approach to measure and compare the technical efficiency of rice production activities across the regions of Vietnam. Using the metafrontier approach as a common production technology is more effective when wishing to compare relative technical efficiency levels across regions, those which may employ a variety of production technologies. The results of this study reflect the fact that technical efficiency levels vary more across regions when measured with respect to regional frontiers than when using the metafrontier approach. The study finds technical efficiency scores to be high when using regional frontier measurements, but lower when using the metafrontier approach. When using the metafrontier to adjust differences across regional frontiers, while the Mekong River Delta the main rice producing region in Vietnam has the highest efficiency, the Red River Delta which is the second region in terms of rice production has quite low efficiency scores when compared to some other regions in the country. One of the key findings of this study is that measuring and comparing the technical efficiency of rice production across different regions should not be carried out for individual regions alone, but for all regions.