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The impact of subsidies on efficiency and production: empirical test of forestry in Japan

Author

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  • Satoshi Aoyagi
  • Shunsuke Managi

Abstract

This study evaluates efficiency of forest management in Japan. Our results show that efficiency of forest management decreases over 25 years period from 1975 to 2000 on an average. The study indicates a substantial variation in efficiency across prefectures with a potential for output saving in the range of 40% on an average. Our econometric results seem to support the hypothesis that government subsidies had an adverse effect on economic performance of forestry sector. More subsidised prefectures were found to exhibit statistically significantly lower levels of efficiency.

Suggested Citation

  • Satoshi Aoyagi & Shunsuke Managi, 2004. "The impact of subsidies on efficiency and production: empirical test of forestry in Japan," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 3(3/4), pages 216-230.
    • Handle: RePEc:ids:ijarge:v:3:y:2004:i:3/4:p:216-230
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    Citations

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    Cited by:

    1. Abida RAMZAN* & Bilal MEHMOOD*, 2018. "ARE FORESTRY AND FOREIGNERS BOUNTY FOR MACROECONOMIC PERFORMANCE? A Global Evidence," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 83-102.
    2. Quiroga, Sonia & Suarez, Cristina & Ficko, Andrej & Feliciano, Diana & Bouriaud, Laura & Brahic, Elodie & Deuffic, Philippe & Dobsinska, Zuzana & Jarsky, Vilem & Lawrence, Anna & Nybakk, Erlend, 2019. "What influences European private forest owners' affinity for subsidies?," Forest Policy and Economics, Elsevier, vol. 99(C), pages 136-144.
    3. Radek Rinn & Vilém Jarský, 2022. "Analysis of Financial Support for Forestry in the Czech Republic from the Perspective of Forest Bioeconomy," Sustainability, MDPI, vol. 14(23), pages 1-25, November.

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