ECONOMIC EFFICIENCY OF MORINDA OFFICINALIS FARMS IN BA CHE DISTRICT, QUANG NINH PROVINCE, VIETNAM AND THE IMPACT OF FARM SIZE

Abstract

The current study uses data collected through face-to-face interviews with 45 Morinda Officinalis growers in three communes in Ba Che district, Quang Ninh province to examine economic efficiency of the farms individually and by farm size (large, medium and small). It also analyses the impact of farm size and other influential factors on efficiency of the farms. Results generated from the cost – benefit analysis show that medium-size farms have the highest efficiency, followed by large farms and small farms. Results produced by the Tobit models show that the impact of farm size on economic efficiency of all models is negative and significant at the one per cent level. In addition, the impact of the total cost on the economic efficiency is positive and significant at the one per cent level, but only for models 1-4. Also, the impact of professional of the farm owners on the economic efficiency of the farms is positive, but only significant at the ten per cent level.