Farm production efficiency and natural forest extraction: Evidence from Cambodia

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

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.

Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018

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Document type:Farm production efficiency and natural forest extraction: Evidence from Cambodia (1047 kB - pdf)