2007 Fiscal Year Final Research Report Summary
Econometric Study on Agricultural Productivity Influenced by Japan-Korea Free Trade Agreement
| Project/Area Number |
17580203
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Agro-economics
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| Research Institution | Asahikawa University |
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Principal Investigator |
KONDO Katsunobu Asahikawa University, Faculty of Economics, Associate Professor (20305874)
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| Co-Investigator(Kenkyū-buntansha) |
YAMAMOTO Yasutaka Hokkaido Univ., Research Faculty of Agriculture, Associate Professor (90191452)
SASAKI Jun Tokyo Univ. of Agriculture, Faculty of Bioindustry, Lecturer (00339087)
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| Project Period (FY) |
2005 – 2007
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| Keywords | rice productivity / technical change / catching-up effect / Japan-Korea Free Trade Agreement / GTAP model |
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| Research Abstract |
The purpose of this study is to measure rice productivity growth and to evaluate the impact of environmental pollution from agriculture caused by agricultural trade liberalization between Japan and Korea. Results of the study can be summarized as follows.
First, we measure rice productivity change employing the input-oriented Malmquist productivity indices through comparison of productivity growth between the pre-Rice Acreage Control Programmes period 1957-1970 (pre-RACP period) and the Rice Acreage Control Programmes period 1971-1995 (RACP period). The productivity change is decomposed into catching-up effect and technical change. Empirical results suggest that Japan's annual productivity growth during RACP period was stagnant and lower than pre-RACP period. The technical progress was dominant compared to the catching-up effect in both the pre-RACP and RACP periods. These results suggest that the growth rate for rice productivity in Japan will decline to zero percent in the future.
Second, we investigate the potential impact of environmental pollution from agriculture caused by agricultural trade liberalization under the Japan-Korea Free Trade Agreement (JKFTA) using the Global Trade Analysis Project (GTAP) model and the OECD Nitrogen Balance Database. The scenario we model assumes the complete removal of all import tariffs between Japan and Korea, not only in the agricultural sector but in non-agricultural sectors, as well. The GTAP results show that farm outputs increase significantly in Korea and decrease slightly in Japan. Farm production of most commodities slightly declines in Japan, while outputs from the livestock sector and the rice sector exhibit significant expansion in Korea. The nitrogen balance results show that the possible JKFTA have a relatively greater impact on the environmental pollution from agriculture in Korea than in Japan. The JKFTA is likely to lead to an overall increase in the total nitrogen surplus for Japan and Korea.
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