Determinants of the economic efficiency of grapefruit-growing households under VietGap and traditional standards in An Giang

Abstract

The study aims to assess the economic efficiency of grapefruit-growing households, and the extent to which various factors influence it in Chau Phu district, An Giang province. The study is mainly based on primary data collected through face-to-face interviews with 180 grapefruit-growing households, specifically 72 households applying VietGap standards and 108 households applying traditional farming methods in Chau Phu district, An Giang province. The study uses a two-step estimation method through (i) the maximum likelihood estimation method to calculate the economic efficiency for each grapefruit cultivation household and (ii) the least squares estimation method to determine the level of influence of factors on the economic efficiency of grapefruit-growing households in An Giang. The research results show that both models have high statistical significance and identify a number of factors that have positive and negative effects on economic efficiency. Hence, the article proposes recommendations to help households use and invest reasonably in production factors to maximize economic outcomes for grapefruit households in the region.