The Impact of the Expansion of Branch Network of Policy Finance on the Primary Sector’s Labor Productivity: A Macro Data Analysis

Abstract

The objective of this study is to analyze the effect of the expansion of the branch network of policy finance on the primary sector economy, using aggregated macro economic data. The findings are as follows. First, if we assume the branch network expansion affected only certain prefectures, such prefectures raised labor productivity compared to other prefectures. On the other hand, if we assume the branch network expansion had an influence on all prefectures, then the prefectures where the ratio of certified farmers was higher decreased labor productivity more. If the latter is correct, it indicates an inefficiency of policy finance.