An Assessment of the Rice Production Function for Thailand (in Thai)
Sommai Udomwitid and Suwanna Praneetvatakul
This paper assesses an appropriate production function approach for analyzing the efficient use of inputs in rice farming in Thailand. The farm inputs considered are fertilizer and pesticide. The paper reviews the rice production functions in Thailand in the past 20 years covering 41 functions. The farm-household survey of 94 respondents was also conducted in the Central and North of Thailand for 3 crop years, in 1999/00, 2000/01 and 2002/03. This provides a set of panel data of 282 samples to be used for the empirical analysis. The analysis is classified by the functional forms of the production functions. The present value of marginal product (VMP) of each function is calculated. The VMP is compared to the input price. Subsequently, the efficiency level of the input use can be identified. The actual level of input use is also evaluated. The results reveal that using the translog production function in consideration with the damage control function would be the most appropriate approach for assessing the efficient input uses in rice production in Thailand. This would help the analyst to avoid overestimating the efficiency of rice input. The empirical results confirm that the approach can be appropriately applied in the analysis. The results also show evidence of overuse of pesticides in Thai rice farming, which suggests an urgent need for policy and regulation to control and reduce the use of pesticide.
Keywords: production function, production efficiency, damage control agent, damage control function
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