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By Yoshimi Kuroda (auth.)

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Extra resources for Production Structure and Productivity of Japanese Agriculture: Volume 1: Quantitative Investigations on Production Structure

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In addition, this chapter finds that changes in the composition of crop and livestock production had significant impacts on relative factor uses. Above all, expanding livestock production required relatively less labor than expanding crop production, implying a positive contribution to the rapid transfer of labor from agriculture to the non-agricultural sectors. Chapter 6 investigates the determinants of changes in the growth of conventionally measured TFP in postwar Japanese agriculture. The investigation is carried out for different size classes of farms for the 1957–97 period by decomposing the TFP growth rates into the scale economies effect and technological change effect.

Chapter 4 discusses factor substitutions in postwar Japanese agriculture by focusing on biased technological change. This chapter first measures the factor biases of technological change in postwar Japanese agriculture, then associates them with the movements of factor prices, and it finally tests for the Hicks induced innovation hypothesis. The results show that technological change was biased toward saving labor and using machinery, intermediate input, land, and other input. This biased technological change is found to be, in principle, consistent with the Hicks induced innovation hypothesis at least for labor, machinery, and intermediate input.

Chapter 7 investigates the factors responsible for the drastic decline in the growth rate of labor productivity in Japanese agriculture from the 1957–75 to 1976–97 periods. This investigation was carried out by a newly devised procedure which, departing from the conventional growth accounting model proposed by Solow (1957), decomposes the growth rate of labor productivity into (1) the total substitution effects which consist of the price effects due to factor price changes and the biased technological change effects and (2) the TFP effects composed of the scale effects due to scale economies and the technological progress effects.

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