American Journal of Applied Sciences

Determinants of Technical Efficiency of Sugarcane Production among Small Holder Farmers in Lao PDR

Poungchompu Supaporn

DOI : 10.3844/ajassp.2015.644.649

American Journal of Applied Sciences

Volume 12, Issue 9

Pages 644-649

Abstract

This study was to examine technical efficiency in sugarcane production in Savannakhet, Lao PDR. A stochastic frontier production function was applied with the data collected from 110 sample farmers in 2012. The results reveal that cultivated area (p<0.01), hired labor (p<0.10) and capital (p<0.10) are the major significantly positive factors in the output of sugarcane. Mean of technical efficiency was found to be 0.7431. In order to increase the efficiency of sugarcane farms improvements in farmers’ education and extension service are the two most important variables which can be used by policy makers.

Copyright

© 2015 Poungchompu Supaporn. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.