TY - JOUR
T1 - Productivity measures and effects from subsidies and trade
T2 - An empirical analysis for Japan's forestry
AU - Managi, Shunsuke
N1 - Copyright:
Copyright 2010 Elsevier B.V., All rights reserved.
PY - 2010/12
Y1 - 2010/12
N2 - Several techniques have been proposed in the literature to measure productivity. While allowing for inefficiency of the production unit, we provide a methodological comparison of alternative approaches to measure total factor productivity. This article evaluates the effects of unintended policy outcomes such as government subsidies and foreign trade. Empirically, we analyse the forest productivity of timber in Japan by using panel data on 46 regions. The results suggest substantial variation in productivity between these two techniques although average trends are similar. We find that subsidies impede competition since the government is ready to rescue a loss-making firm with subsidies rather than allow it to close. In contrast, trade is shown to have positive effects on productivity.
AB - Several techniques have been proposed in the literature to measure productivity. While allowing for inefficiency of the production unit, we provide a methodological comparison of alternative approaches to measure total factor productivity. This article evaluates the effects of unintended policy outcomes such as government subsidies and foreign trade. Empirically, we analyse the forest productivity of timber in Japan by using panel data on 46 regions. The results suggest substantial variation in productivity between these two techniques although average trends are similar. We find that subsidies impede competition since the government is ready to rescue a loss-making firm with subsidies rather than allow it to close. In contrast, trade is shown to have positive effects on productivity.
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U2 - 10.1080/00036840802360146
DO - 10.1080/00036840802360146
M3 - Article
AN - SCOPUS:78649351913
VL - 42
SP - 3871
EP - 3883
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 30
ER -