Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Technical Efficiency of Smallholder Tea Production: A Case Study in Viet Nam

Author(s): Nguyen Van Huong, Hoang Van Hung, Nguyen Van Song, Thai Van Ha

The objectives of the study were to estimate resource use efficiency and to identify the determinants of tea production in Yen Bai province of Vietnam using stochastic frontier approach and technical efficiency technique. The data was collected from 400 randomly selected tea farmers in Yen Bai province in 2019. Based on technical details, the study provided useful information on the method in which farms should utilize resources efficiently to produce tea in the research site. The result showed that the Technical Efficiency (TE) of tea farmers ranges from 27.27 percent to 95.45 percent, with an average technical efficiency of tea farms was 73.11 percent. And the coefficients of labor, fertilizer, pesticide, variety, tea age, education, and cooperative had positive signs with significant at 1 percent. And the coefficients of household size, ethic, and training had positive signs with significant at 5 percent. Meanwhile, the coefficients of distance and farming had negative signs as expected and it had significant at 10 percent and 1 percent respectively.

Get the App