Applying Cobb-Douglas stochastic frontier profit function: A case study of Hoalocmango in the Mekong Delta, Vietnam

Abstract

This study employed a Cobb-Douglas stochastic frontier profit function to measure the level of economic efficiency and its determinants. A structured questionnaire was used to collect data from 382 sample observations (118, 130, and 134 observations for seasons 1, 2, and 3, respectively). The research estimated a mean economic efficiency of 28.65%, 19.65%, and 28.00% in seasons 1, 2, and 3, respectively. The study found out the credit access variable to be positively and significantly influencing on economic efficiency in all three seasons. Besides, the results of the analysis indicated that the root fertiliser price and the land area were important factors in season 1 at the 1% significance level. In season 2, the price of fungicide, root fertiliser, leaf fertiliser influenced substantially on mango farmers, profit at the conventional significance levels. In season 3, the leaf fertiliser price, labour price and land area played a major role in economic efficiency.