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Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia

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  • Mishra, Ashok K.
  • Bairagi, Subir
  • Velasco, Maria Lourdes
  • Mohanty, Samarendu
Abstract
Cambodia is one of the climatic stress-prone countries in Southeast Asia. Rice is the dominant cash crop for Cambodians, and is adversely affected by recurrent droughts and floods. In addition, farmers have limited or no access to capital markets. This article investigates the impact of abiotic stresses (droughts and floods) and access to capital on the farming efficiency of smallholders in Cambodia. We find that the mean technical efficiency of rice farmers is about 0.60, implying that farmers can increase their production by about 40% with existing resources. Drought and soil fertility were identified as the major sources of inefficiency in rice production. Adoption of drought-tolerant varieties could help increase output and efficiency. We also find that access to capital and educational attainment significantly improved rice farming efficiency. Finally, we conclude that increasing rice productivity can help in improving income and thereby reducing poverty among Cambodian rice producers.

Suggested Citation

  • Mishra, Ashok K. & Bairagi, Subir & Velasco, Maria Lourdes & Mohanty, Samarendu, 2018. "Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia," Land Use Policy, Elsevier, vol. 79(C), pages 215-222.
    • Handle: RePEc:eee:lauspo:v:79:y:2018:i:c:p:215-222
    DOI: 10.1016/j.landusepol.2018.08.016
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    2. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Do, Manh Hung & Nguyen, Duy Linh & Grote, Ulrike, 2022. "Shocks, agricultural productivity, and natural resource extraction in rural Southeast Asia," World Development, Elsevier, vol. 159(C).
    3. Bairagi, Subir & Mishra, Ashok K. & Durand-Morat, Alvaro, 2020. "Climate risk management strategies and food security: Evidence from Cambodian rice farmers," Food Policy, Elsevier, vol. 95(C).
    4. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Credit, shocks and production efficiency of rice farmers in Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 780-791.
    5. Manh Hung Do & Trung Thanh Nguyen & Ulrike Grote, 2022. "Is land consolidation policy a solution for rice production and agricultural transformation in Vietnam?," TVSEP Working Papers wp-028, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    6. Abdul-Rahaman, Awal & Issahaku, Gazali & Zereyesus, Yacob A., 2021. "Improved rice variety adoption and farm production efficiency: Accounting for unobservable selection bias and technology gaps among smallholder farmers in Ghana," Technology in Society, Elsevier, vol. 64(C).
    7. Bairagi, Subir & Bhandari, Humnath & Kumar Das, Subrata & Mohanty, Samarendu, 2021. "Flood-tolerant rice improves climate resilience, profitability, and household consumption in Bangladesh," Food Policy, Elsevier, vol. 105(C).
    8. Bairagi, Subir K. & Durand-Morat, Alvaro, 2021. "The Impacts of Droughts and Floods on the Global Rice Market," 2021 Annual Meeting, August 1-3, Austin, Texas 313859, Agricultural and Applied Economics Association.
    9. Khun, Channary & Lim, Sokchea, 2023. "Productivity and market participation: Cambodian rice farmers," Journal of Asian Economics, Elsevier, vol. 88(C).
    10. Selina Bruns & Bernhard Dalheimer & Oliver Musshoff, 2022. "The effect of cognitive function on the poor's economic performance: Evidence from Cambodian smallholder farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 468-480, May.
    11. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Weather shocks, credit and production efficiency of rice farmers in Vietnam," TVSEP Working Papers wp-017, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    12. Zhu, Xiaoke & Hu, Ruifa & Zhang, Chao & Shi, Guanming, 2021. "Does Internet use improve technical efficiency? Evidence from apple production in China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
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    More about this item

    Keywords

    Cambodia; Capital; Drought; Rice; Stress-tolerant; Stochastic production function; Technical efficiency;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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