Total Factor Productivity of the Rice Production in Hokkaido under the Introduction of Improved Taste Varieties

Abstract

The objective of this study is to measure total factor productivity (TFP) on a gross revenue basis reflecting the market valuation effect on products due to quality/taste improvement. The study examines relative improvements of TFP on the rice production in Hokkaido by applying Malmquist productivity index estimation. The findings are follows. First, both improvements of market valuation and of productivity on a quantity basis contributed to the TFP growth. Second, the period of TFP growth could show contributions of the diffusion of improved taste varieties and of marketing efforts on them as well as of the research and development in this region.