Environmental factors affect agriculture production productivity and efficiency, but they have often been ignored in estimations, leading to biased results. This study will focus on estimating the impacts of environmental factors to be treated as production inputs in rice production in the Red River Delta. The dataset is extracted from 369 rice producer interviews conducted during Aug-Sep 2010 by the enumerators in four different locations. Both Cobb-Douglass and translog production functions are employed in this study. Eight production inputs and four environmental factors are included in these functions. First, the correlation coefficients between environmental factors and production inputs show the necessity to include environmental factors in production functions. Next, the estimation of the stochastic production frontier with a two-stage approach is used for estimation of productivity. The results show that using more fertilizer will increase the rice yields. However, applying insecticide and herbicide exceedingly will lower the yield. Irrigation access and water pollution negatively affect rice yield. Within nine managerial determinants of inefficiency, the policy implications are given to family labor ratio and mono-cropping. Applying new technology of direct-seeding is also recommended. However, further research is needed to confirm the result.
|Number of pages
|European Journal of Social Sciences
|Published - Dec 2011
All Science Journal Classification (ASJC) codes
- General Social Sciences