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Competition Effects and Industrial Productivity: Lessons from Japanese Industry

Author

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  • Masahito Ambashi

    (Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia and Research Institute of Economy, Trade and Industry (RIETI) , Tokyo)

Abstract

This study mainly investigates the causal relation between the degree of competition, which is measured by the Lerner index, and the total factor productivity (TFP) growth rate on the basis of the Japanese industry-level panel data from 1980 to 2008. While the main finding uncovers a positive effect of competition on the TFP growth rate in manufacturing industries throughout the sample period, 1980–2008, the observed effect for non-manufacturing industries at this time is slightly negative. This unique finding of a negative competition effect suggests that the Schumpeterian hypothesis may be applicable in non-manufacturing industries.

Suggested Citation

  • Masahito Ambashi, 2017. "Competition Effects and Industrial Productivity: Lessons from Japanese Industry," Asian Economic Papers, MIT Press, vol. 16(3), pages 212-249, Fall.
    • Handle: RePEc:tpr:asiaec:v:16:y:2017:i:3:p:212-249
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    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G00 - Financial Economics - - General - - - General

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