Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 3871-3883 |
| Number of pages | 13 |
| Journal | Applied Economics |
| Volume | 42 |
| Issue number | 30 |
| DOIs | |
| Publication status | Published - Dec 1 2010 |
| Externally published | Yes |
Fingerprint
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
Cite this
Productivity measures and effects from subsidies and trade : An empirical analysis for Japan's forestry. / Managi, Shunsuke.
In: Applied Economics, Vol. 42, No. 30, 01.12.2010, p. 3871-3883.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Productivity measures and effects from subsidies and trade
T2 - An empirical analysis for Japan's forestry
AU - Managi, Shunsuke
PY - 2010/12/1
Y1 - 2010/12/1
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.
UR - http://www.scopus.com/inward/record.url?scp=78649351913&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=78649351913&partnerID=8YFLogxK
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 -