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Technological Change and Technical Efficiency of Corn Farmers in the Province of Hatay, Red River Delta, North of Vietnam
Dissertation Abstract:
In Vietnam, corn ranks second after rice in annual crop production. The improvement in corn productivity has significant contribution to food security for the country. However, corn production has to increase in response to the projected increase in demand for food and feeds.
This study attempted to examine the two sources of productivity growth— technological change (TC) and technical efficiency (TE) of corn sector in selected areas.
Cobb-Douglas production function form was used to analyze the effects of different inputs as well as to measure mean and farm-specific technical efficiency using cross-section data collected from 180 corn farmers in 2000. The change in TE was measured by subtracting technical inefficiency of high-yielding varieties (HYV) from the TE improvement of traditional varieties (TV). TC was measured by the difference between the two frontier curves, TV and HYV. Total factor productivity (TFP) was then measured by the sum of TC and the change in TE.
Corn production had decreased until 1970, then gradually increased in 1970- 1990. Corn had the highest growth rate in the 1990s because of the adoption of HYV.
Significant factors affecting corn production differed from variety to variety, depending on the difference in input requirement, and socioeconomic and natural conditions. Nitrogen was the most important macronutrient affecting corn production but farmers were found to practice imbalanced fertilization. HYV had about 1.50 times higher yield than TV. It became the main factor in corn production growth.
TE differed from farm to farm with a mean of 79 percent. Phuc Tho had a higher technical efficiency level that Thach That because corn was considered as a main crop. In Thach That, corn was treated only as an additional crop. Educational attainment, seed establishment method, and credit were the main factors affecting TE of both districts and the province as a whole.
TC was biased. Area, seed, nitrogen, and family labor were factors saved due to HYV. HYV had higher yield per unit of land given same seed, nitrogen, and family labor inputs than TV.
TC dominated TE in explaining the TFP growth. TC contributed 2,532.71 kg/ ha. The change in TE had negative contribution to TFP of 764.38 kg/ha due to rapid expansion of HYV, resulting in TFP change of 1,768.33 kg/ha.
The following recommendations were formulated to increase TFP in selected areas as well as in the national level: (1) strict implementation of the agricultural land law, (2) promotion of the adoption of hybrid varieties, (3) training and provision of technical support for farmers, and (4) a credit program.
The results of the study could be generalized to apply to other provinces, with similar environment.