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Competition and Productivity in Japanese Manufacturing Industries

  • Yosuke Okada
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    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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    File URL: http://www.nber.org/papers/w11540.pdf
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    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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