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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, vol. 37, pages 37-64.
    2. Priit Vahter, 2006. "Productivity in Estonian enterprises: the role of innovation and competition," Bank of Estonia Working Papers 2006-07, Bank of Estonia, revised 11 Dec 2006.
    3. Nguyen, Pascal, 2012. "The impact of foreign investors on the risk-taking of Japanese firms," MPRA Paper 38991, University Library of Munich, Germany.
    4. Héctor Salgado Banda & Lorenzo E. Bernal Verdugo, 2007. "Multifactor Productivity and its Determinants: Al Empirical Analysis for Mexican Manufacturing," Working Papers 2007-09, Banco de México.
    5. David Flath, 2009. "Industrial Concentration, Price-Cost Margins, and Innovation," ISER Discussion Paper 0739, Institute of Social and Economic Research, Osaka University.
    6. Molyneaux, Lynette & Wagner, Liam & Froome, Craig & Foster, John, 2012. "Resilience and electricity systems: A comparative analysis," Energy Policy, Elsevier, vol. 47(C), pages 188-201.
    7. Sangho KIM & Hyunjoon LIM & Donghyun PARK, 2007. "The Effect of Imports and Exports on Total Factor Productivity in Korea," Discussion papers 07022, Research Institute of Economy, Trade and Industry (RIETI).
    8. Daniel Chiquiar & Manuel Ramos Francia, 2009. "Competitiveness and Growth of the Mexican Economy," Working Papers 2009-11, Banco de México.
    9. AMBASHI Masahito, 2013. "Does Competition Improve Industrial Productivity? An analysis of Japanese industries on the basis of the industry-level panel data," Discussion papers 13098, Research Institute of Economy, Trade and Industry (RIETI).

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