IDEAS home Printed from https://ideas.repec.org/p/ags/cfcp15/344326.html
   My bibliography  Save this paper

Total Factor Productivity and its Decomposition of Multi-Output Paddy Farming in Japan

Author

Listed:
  • YAHATA, Tomonori
  • NAKATANI, Tomoaki
  • NAKASHIMA, Yasuhiro
  • SENDA, Tetsuji
  • FUJIE, Takeshi

Abstract

The objective of this article is to analyze total factor productivity (TFP) change and its components of paddy farming that produces multiple outputs under policies controlling the production of food rice in Japan from 2004 to 2014. Using a parametric estimation technique of the Malmquist productivity index with a stochastic input distance function and farm-level panel data, we measure TFP change and decompose it into technical changes, a technical efficiency change, and scale efficiency changes. Results show that the TFP of paddy farming in Japan stagnated through the period, with moderate technological progress offset by deteriorating technical efficiency. The existence of technological progress and technical inefficiency is also confirmed by statistical testing. Technical change has some bias toward changing the output mix. Moreover, scale efficiency is also deteriorating, but all the farms produce under increasing returns to scale technology. Our results suggest that technical efficiency improvement and exploitation of scale economies are essential, as well as keeping an expansion of the technological frontier for Japanese paddy farming to recover its productivity growth. A historical process of Japanese agriculture would provide beneficial insights for other Monsoon Asian countries likely to experience social and economic transitions similar to those in Japan.

Suggested Citation

  • YAHATA, Tomonori & NAKATANI, Tomoaki & NAKASHIMA, Yasuhiro & SENDA, Tetsuji & FUJIE, Takeshi, 2024. "Total Factor Productivity and its Decomposition of Multi-Output Paddy Farming in Japan," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344326, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:cfcp15:344326
    DOI: 10.22004/ag.econ.344326
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/344326/files/21405.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.344326?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kazuo Ogawa, 2020. "Inefficiency in rice production and land use: a panel study of Japanese rice farmers," The Japanese Economic Review, Springer, vol. 71(4), pages 641-669, October.
    2. Katsunobu Kondo & Yasutaka Yamamoto & Jun Sasaki, 2017. "Total Factor Productivity of the Japanese Rice Industry," Asian Economic Journal, East Asian Economic Association, vol. 31(4), pages 331-353, December.
    3. Alejandro Plastina & Sergio H Lence, 2018. "A Parametric Estimation of Total Factor Productivity and Its Components in U.S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1091-1119.
    4. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    5. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 18(1), pages 5-22, July.
    6. Hugo Fuentes & Emili Grifell-Tatjé & Sergio Perelman, 2001. "A Parametric Distance Function Approach for Malmquist Productivity Index Estimation," Journal of Productivity Analysis, Springer, vol. 15(2), pages 79-94, March.
    7. Fabian Frick & Johannes Sauer, 2021. "Technological Change in Dairy Farming with Increased Price Volatility," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 564-588, June.
    8. Alphonse Singbo & Bruno Larue, 2016. "Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 339-363, June.
    9. Kuroda, Yoshimi, 1989. "Impacts of economies of scale and technological change on agricultural productivity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 3(2), pages 145-173, June.
    10. Alejandro Nin-Pratt & Bingxin Yu & Shenggen Fan, 2010. "Comparisons of agricultural productivity growth in China and India," Journal of Productivity Analysis, Springer, vol. 33(3), pages 209-223, June.
    11. Christos Pantzios & Giannis Karagiannis & Vangelis Tzouvelekas, 2011. "Parametric decomposition of the input-oriented Malmquist productivity index: with an application to Greek aquaculture," Journal of Productivity Analysis, Springer, vol. 36(1), pages 21-31, August.
    12. Yoshimi Kuroda, 2013. "Production Structure and Productivity of Japanese Agriculture," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-28764-9.
    13. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
    14. Masakatsu Akino & Yujiro Hayami, 1974. "Sources of Agricultural Growth in Japan, 1880–1965," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(3), pages 454-479.
    15. George E. Battese, 1997. "A Note On The Estimation Of Cobb‐Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 250-252, January.
    16. Kwansoo Kim & Jean-Paul Chavas & Bradford Barham & Jeremy Foltz, 2012. "Specialization, diversification, and productivity: a panel data analysis of rice farms in Korea," Agricultural Economics, International Association of Agricultural Economists, vol. 43(6), pages 687-700, November.
    17. Yuko Akune & Nobuhiro Hosoe, 2021. "Microdata analysis of Japanese farmers’ productivity: Estimating farm heterogeneity and elasticity of substitution among varieties," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 633-644, July.
    18. Yoshimi Kuroda, 2013. "Production Structure and Productivity of Japanese Agriculture," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-28761-8.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alphonse G. Singbo & Bruno Larue, 2014. "Scale Economies and Technical Efficiency of Quebec Dairy Farms," Cahiers de recherche CREATE 2014-7, CREATE.
    2. Reza Fallahnejad & Mohammad Reza Mozaffari & Peter Fernandes Wanke & Yong Tan, 2024. "Nash Bargaining Game Enhanced Global Malmquist Productivity Index for Cross-Productivity Index," Games, MDPI, vol. 15(1), pages 1-21, January.
    3. Gbemay Singbo, Alphonse & Larue, Bruno, 2014. "Scale Economies and Technical Efficiency of Quebec Dairy Farms," Working Papers 182482, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
    4. Xiaobo Shen & Boqiang Lin, 2017. "Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    5. Supawat Rungsuriyawiboon & Xiaobing Wang, 2009. "Agricultural productivity growth in traditional and transitional economies in Asia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(2), pages 52-72, November.
    6. Mirza, Faisal Mehmood & Mushtaq, Iqra & Ullah, Kafait, 2017. "Assessing the efficiency dynamics of post reforms electric distribution utilities in Pakistan," Utilities Policy, Elsevier, vol. 47(C), pages 18-28.
    7. Alphonse Singbo & Bruno Larue, 2016. "Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 339-363, June.
    8. Tovar, Beatriz & Javier Ramos-Real, Francisco & de Almeida, Edmar Fagundes, 2011. "Firm size and productivity. Evidence from the electricity distribution industry in Brazil," Energy Policy, Elsevier, vol. 39(2), pages 826-833, February.
    9. Rungsuriyawiboon, Supawat & Lissitsa, Alexej, 2006. "Agricultural Productivity Growth In The European Union And Transition Countries," IAMO Discussion Papers 14903, Institute of Agricultural Development in Transition Economies (IAMO).
    10. Rungsuriyawiboon, Supawat & Lissitsa, Alexej, 2006. "Agricultural productivity growth in the European Union and transition countries [Produktivitätsentwicklung in der Landwirtschaft in der Europaischen Union und in den Transformationsländern]," IAMO Discussion Papers 94, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    11. Lizhan Cao & Zhongying Qi & Junxia Ren, 2017. "China’s Industrial Total-Factor Energy Productivity Growth at Sub-Industry Level: A Two-Step Stochastic Metafrontier Malmquist Index Approach," Sustainability, MDPI, vol. 9(8), pages 1-22, August.
    12. Marzec, Jerzy & Pisulewski, Andrzej, 2019. "The Measurement of Time Varying Technical Efficiency and Productivity Change in Polish Crop Farms," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(1), March.
    13. Shao, Benjamin B.M. & Lin, Winston T., 2016. "Assessing output performance of information technology service industries: Productivity, innovation and catch-up," International Journal of Production Economics, Elsevier, vol. 172(C), pages 43-53.
    14. Tsekouras, Kostas D. & Pantzios, Christos J. & Karagiannis, Giannis, 2004. "Malmquist productivity index estimation with zero-value variables: The case of Greek prefectural training councils," International Journal of Production Economics, Elsevier, vol. 89(1), pages 95-106, May.
    15. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    16. Yu, Bingxin & Liao, Xiyuan & Shen, Hongfang, 2013. "Parametric decomposition of the malmquist index in an output-oriented distance function: Productivity in Chinese agriculture," IFPRI discussion papers 1244, International Food Policy Research Institute (IFPRI).
    17. Yuan Ma & Bernhard Brümmer & Xiaohua Yu, 2023. "Trade development and agricultural productivity change: Evidence from China," The World Economy, Wiley Blackwell, vol. 46(10), pages 3136-3153, October.
    18. Trigo Gamarra, Lucinda, 2008. "The effects of liberalization and deregulation on the performance of financial institutions: The case of the German life insurance market," Thuenen-Series of Applied Economic Theory 93, University of Rostock, Institute of Economics.
    19. Kao, Chiang & Liu, Shiang-Tai, 2014. "Measuring performance improvement of Taiwanese commercial banks under uncertainty," European Journal of Operational Research, Elsevier, vol. 235(3), pages 755-764.
    20. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.

    More about this item

    Keywords

    Productivity Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cfcp15:344326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://iaae-agecon.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.