Scale and scope economies in small household rice farming in Vietnam

The Vietnamese agricultural sector has experienced a dramatic structural change based on increased specialization in rice cultivation. However, small-scale rice-farmers have continued to grow multiple crops, especially less developed provinces. While the literature advocates crop diversification for reasons of both economic and ecological sustainability, there lacks empirical evidence as whether brings efficiency productivity gains small farms. present study is first applications input-oriented stochastic distance function approach estimating scale scope economies using data multi-crop farming households Vietnam. We find strong product-specific scale. Scope are also rice, vegetable, other annual production. This suggests that enhances productivity. still exists significant technical inefficiency production, indicating opportunities expand farm output at existing level inputs technologies. More specifically, our results indicate it desirable vegetable production mountainous areas while cultivation can be further expanded delta coastal regions.