Productivity measures and effects from subsidies and trade: an empirical analysis for Japan's forestry
AbstractSeveral techniques have been proposed in the literature to measure productivity. While allowing for inefficiency of the production unit, we provide a methodological comparison of alternative approaches to measure total factor productivity. This article evaluates the effects of unintended policy outcomes such as government subsidies and foreign trade. Empirically, we analyse the forest productivity of timber in Japan by using panel data on 46 regions. The results suggest substantial variation in productivity between these two techniques although average trends are similar. We find that subsidies impede competition since the government is ready to rescue a loss-making firm with subsidies rather than allow it to close. In contrast, trade is shown to have positive effects on productivity.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 42 (2010)
Issue (Month): 30 ()
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Other versions of this item:
- Managi, Shunsuke, 2005. "Evaluation And Policy Analysis Of Japanese Forestry," 2005 Annual meeting, July 24-27, Providence, RI 19358, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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