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

Atomu Nitta, Daisuke Sawauchi, Katsunobu Kondo, Simone Severini and Yasutaka Yamamoto

Economic Review, 2024, vol. 75, issue 1, 4-4

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.

JEL-codes: D24 Q12 Q18 (search for similar items in EconPapers)
Date: 2024
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