Farm production efficiency and natural forest extraction: Evidence from Cambodia

Trung Thanh Nguyen, Truong Lam Do, Priyanka Parvathi, Grada Wossink, Ulrike Grote

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Abstract

Farm production and natural forest extraction remain principal livelihood strategies of local people in many rural areas of the developing world. In this paper, we apply stochastic frontier analysis to evaluate farm production efficiency and simultaneous equations modelling to estimate the interrelationship between farm production efficiency and natural forest extraction. We use a two-year panel dataset of 430 rural households in Stung Treng province of Cambodia. We find that natural forest extraction is decreasing in farm production efficiency. Our results suggest that improving farm production efficiency, via the promotion of rural education and privatization of farm land, should be considered an integral component of natural forest conservation policy.
Original languageEnglish
Pages (from-to)480-493
JournalLand Use Policy
Volume71
Early online date14 Nov 2017
DOIs
Publication statusPublished - 2017

Keywords

  • rural livelihood
  • Non-separability
  • stochastic frontier analysis
  • Simultaneous equations model
  • Panel data
  • Instrumental variable

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