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Competition and Productivity in Japanese Manufacturing Industries

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  • Yosuke Okada

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.

Suggested Citation

  • Yosuke Okada, 2005. "Competition and Productivity in Japanese Manufacturing Industries," NBER Working Papers 11540, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:11540 Note: PR
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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. Héctor Salgado Banda & Lorenzo Bernal Verdugo, 2011. "Multifactor productivity and its determinants: an empirical analysis for Mexican manufacturing," Journal of Productivity Analysis, Springer, vol. 36(3), pages 293-308, December.
    3. 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.
    4. Elif Dayar & Mehmet Teoman Pamukçu, 2014. "Impact of R&D Activities of Firms on Productivity: Findings from an Econometric Study of the Turkish Manufacturing Sector," STPS Working Papers 1402, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Dec 2014.
    5. Flath, David, 2011. "Industrial concentration, price-cost margins, and innovation," Japan and the World Economy, Elsevier, vol. 23(2), pages 129-139, March.
    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. 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).
    8. 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.
    9. 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).
    10. Daniel Chiquiar & Manuel Ramos Francia, 2009. "Competitiveness and Growth of the Mexican Economy," Working Papers 2009-11, Banco de México.
    11. Luengo, María Jesús & Obeso, María, 2013. "Efeito da hélice tríplice em desempenho de inovação," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 53(4), July.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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