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Competition and Productivity in Japanese Manufacturing Industries

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  • Yosuke Okada
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    Abstract

    This paper examines the determinants of productivity in Japanese manufacturing industries, looking particularly at the impact of product market competition on productivity. Using a newly available panel data on around ten thousand firms in Japanese manufacturing for the years 1994-2000, I show that competition, as measured by lower level of industrial price-cost margin, enhances productivity growth, controlling for a broad range of industrial and firm-specific characteristics. Moreover, I suggest that market power, as measured by either individual firm%u2019s price-cost margin or market share, has negative impact on productivity level of R&D performing firms.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11540.

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    Date of creation: Aug 2005
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    Publication status: published as Okada, Yosuke. "Competition And Productivity In Japanese Manufacturing Industries," Journal of the Japanese and International Economies, 2005, v19(4,Dec), 586-616.
    Handle: RePEc:nbr:nberwo:11540

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    Cited by:
    1. Fethi AMRI & Rim MOUELHI, 2013. "Productivity Growth And Competition In Tunisian Manufacturing Firms," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 37, pages 37-64.
    2. Flath, David, 2011. "Industrial concentration, price-cost margins, and innovation," Japan and the World Economy, Elsevier, Elsevier, vol. 23(2), pages 129-139, March.
    3. Héctor Salgado Banda & Lorenzo Bernal Verdugo, 2011. "Multifactor productivity and its determinants: an empirical analysis for Mexican manufacturing," Journal of Productivity Analysis, Springer, Springer, vol. 36(3), pages 293-308, December.
    4. Molyneaux, Lynette & Wagner, Liam & Froome, Craig & Foster, John, 2012. "Resilience and electricity systems: A comparative analysis," Energy Policy, Elsevier, Elsevier, vol. 47(C), pages 188-201.
    5. AMBASHI Masahito, 2013. "Does Competition Improve Industrial Productivity? An analysis of Japanese industries on the basis of the industry-level panel data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13098, Research Institute of Economy, Trade and Industry (RIETI).
    6. Nguyen, Pascal, 2012. "The impact of foreign investors on the risk-taking of Japanese firms," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 233-248.
    7. Daniel Chiquiar & Manuel Ramos Francia, 2009. "Competitiveness and Growth of the Mexican Economy," Working Papers, Banco de México 2009-11, Banco de México.
    8. Sangho KIM & Hyunjoon LIM & Donghyun PARK, 2007. "The Effect of Imports and Exports on Total Factor Productivity in Korea," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 07022, Research Institute of Economy, Trade and Industry (RIETI).
    9. Priit Vahter, 2006. "Productivity in Estonian enterprises: the role of innovation and competition," Bank of Estonia Working Papers, Bank of Estonia 2006-07, Bank of Estonia, revised 11 Dec 2006.

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