Productivity, efficiency and rural development in Myanmar rice production

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 13 March 2015
9.30am–11.00am

Venue

Seminar Room 3, Level 1, JG Crawford Building 132, Lennox Crossing, ANU

Speaker

Nilar Aung, PhD scholar, Crawford School, ANU.

Contacts

Robert Sparrow
6125 3885

Rice is the most dominant crop in agriculture sector, being a staple food crop of the people of Myanmar and principal crop for the development of rural areas as the main source of rural income comes from rice production. Despite the fact that the average yield of rice paddy has remained low since 1995, Myanmar still has the larger potential to promote its production.

In order to investigate how Myanmar might increase its productivity, this paper analyses the source and extent of potential productivity and efficiency gains in Myanmar rice production. In addition, this study also determines the relationship between rice production and rural development in Myanmar. The data used in this research is taken from the author-collected farm survey data covering 634 farms across 30 villages in the major rice growing regions, specifically Ayeyarwady, Bago and Sagaing in 2014. The stochastic production frontier and technical inefficiency models are applied to capture which farm-specific factors determine efficiency gains. Results show that farms with a larger farm size and smaller number of plots and those have better irrigation systems and access to agriculture extension services are more efficient. The findings show that productivity can improve by applying farm mechanization, further developing infrastructure and improving efficient credit markets in the selected regions.

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