Technical Efficiency of Mung Bean Producers: The Case of Myanmar

Abstract

Agriculture plays a key role in Myanmar and it is the backbone of the country’s economy. Among the major export-earning crops in Myanmar, mung bean is one of the important, and it creates many opportunities for smallholders. About 90% of the total production of mung bean is exported for overseas or border trade and has extended markets, especially China, Vietnam and EU countries. This study aims to measure the level of technical efficiency of green mung bean producers and determine the factors influencing the technical efficiency of mung bean production in Tatkon Township, Myanmar. Data from 144 farms were analyzed using a DEA model and Tobit regression. The empirical results reveal that about 46% of farmers had an efficiency score of more than 0.90, which indicates that 54% of farmers were relatively inefficient in their production. The results also show that socioeconomics factors, such as age of farmers, farmers participating in associations and soil fertility, had a significantly positive impact on technical efficiency. Gender, education, access to credit and extension services had a positive impact on the technical efficiency of mung bean production in the study area. To reduce inefficiency, the government should consider providing more services to male farmers and older farmers to improve their capacities, as well as providing an extension of services, new technologies, credit and improved variety for mung bean production.

Keywords

• data envelopment analysis
• Tobit model
• smallholder
• major export earning crop