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Impact of Implementation of the Direct Payments Program on Productivity Level of Rice Production in Japan

Author

Listed:
  • NITTA, Atomu
  • SAWAUCHI, Daisuke
  • KONDO, Katsunobu
  • SEVERINI, Simone
  • YAMAMOTO, Yasutaka

Abstract

The Japanese government implemented an extensive direct payment program to supportfarm income in 2010. However, no previous study has empirically examined the impact of the program implementation on rice productivity, and such an examination is essential because the current demand exists for increased productivity in rice production in Japan. Furthermore, the impacts may vary depending on the farm scale and time point. This empirical study examines the impact of program implementation on farmleveltotal factor productivity (TFP) level in rice production, focusing on the differences across farm scales and time points. Based on the results of combined propensity score matching and difference-in-differences analysis, it appears that program implementation had a positive impact only on larger farms, especially at the beginning of program implementation.

Suggested Citation

  • NITTA, Atomu & SAWAUCHI, Daisuke & KONDO, Katsunobu & SEVERINI, Simone & YAMAMOTO, Yasutaka, 2024. "Impact of Implementation of the Direct Payments Program on Productivity Level of Rice Production in Japan," Economic Review, Hitotsubashi University, vol. 75(1), pages 4-4, April.
    • Handle: RePEc:hit:ecorev:v:75:y:2024:i:1:p:4-4
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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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