IJERD – International Journal of Environmental and Rural Development (2022) 13-1

Research article
erd

Estimates of Factor Shares for Rice Production in Japan for
the Period of 1922-1944
MITSUHIRO TERAUCHI*
Faculty of International Agriculture and Food Studies, Tokyo University of Agriculture, Japan
Email: tera@nodai.ac.jp

SHINOBU YAMADA
Research Center, Institute of Environmental Rehabilitation and Conservation, Tokyo, Japan
Received 20 February 2021

Accepted 6 December 2021(*Corresponding Author)

Abstract The After World War I, the development of the agriculture sector was delayed incontrast with the rapid growth of the industrial sector. Japanese agriculture accelerated byinnovation after the economic revitalization following World War II. It clarifies theproduction structure of the rice production in Japan, and there is this study before the end ofWorld War II after the First World War end during the analysis period. This study clarifies
a change of factor shares of the rice production sector in this time. The purpose of this study
is to elucidate the characteristics of the production structure of the rice production in Japan
from 1922 through 1944, and the agriculture in Japan at this time is considered to be in adeveloping stage. The historic change of the rice production in Japan gives a suggestion foragriculture development in modern Asia. The measurement of factor shares of the riceproduction in the analysis period applies "a method to estimate land income as rest." Inaddition, it measures the Cobb-Douglas's type amount of production formation function. It
clarify the contribution of the production input. The changes of factor shares are as follows.
The change of factor shares is land, labor, fertilizer, cost of draft animals, agriculturalmachinery, materials, building for agriculture, seed in order of the average value from 1922
through 1944. As for the development of production technological system, it is atechnological innovations land-saving and fertilizer-using. The results of estimate by theamount of production formation function are as follows. In the periods of 1922-1944, theinput of the labor is excess level, the input of the fertilizer is under level and the input of theland is equilibrium level.
Keywords Japan rice production, factor shares, amount of production formation function

INTRODUCTION
World War I, the development of the agriculture sector was delayed in contrast with the rapid
growth of the industrial sector. Japanese agriculture accelerated by innovation after the economic
revitalization following World War II. It clarifies the production structure of the rice production inJapan, and there is this study before the end of World War II after the First World War end during
the analysis period. It corresponds to the Meiji period and the prewar age of the Showa period, andthis period is a stagnation period of agricultural production. This study clarifies a change of factor
shares of the rice production sector in this time. The purpose of this study is to elucidate thecharacteristics of the production structure of the rice production in Japan from 1922 through 1944,
and the agriculture in Japan at this time is considered to be in a developing stage. The historicchange of the rice production in Japan gives a suggestion for agriculture development in modernAsia. The measurement of factor shares of the rice production in the analysis period applies "amethod to estimate land income as rest." In addition, it measures the Cobb- Douglas's type amountof production formation function. It clarifies the contribution of the production input.

Ⓒ ISERD34

IJERD – International Journal of Environmental and Rural Development (2022) 13-1

OBJECTIVE
The main object of this study is to analyze the measurement of factor shares of the rice production.
In analysis, the measurement of factor shares of the rice production applies "a method to estimate
land income as rest." In addition, it measures the Cobb-Douglas's type amount of production
formation function. It clarifies the contribution of the production input. The data applying toanalysis are as follows. Ishibashi 1961. "Teikoku Nokai Kome Seisanhi Cyousa Syusei (ImperialAgricultural Organization cost of rice production investigation collection)" is from 1922 to 1948
(Natl. Res. Inst. of Agricultural Economics) (Natl. Res. Inst. of Agricultural Economics publication,
the 207th). A period of estimation of factor shares and the amount of production formation function
by estimate is 1922 through 1945. Sample data are thyme series data for 24 years.
METHODOLOGYThe Estimates of Factors Share
The measurement of factor shares of the rice production in the analysis period applies "a method toestimate land income as rest." It is presented by the following:
Factor sharesL＝(PL・L)/(P・Q)(1)

Factor sharesK＝(PK・L)/(P・Q)(2)

Factor sharesV＝(PV・L)/(P・Q)(3)

Factor sharesS＝1-(PL・L)/(P・Q)-(PK・L)/(P・Q)-(PV・L)/(P・Q)(4)where Q is output; P output price; L labor input; K capital input; V fertilizer input; S land input; LPlabor input price; KP capital input price; VP fertilizer input purice and S land input price (Hayamiand Ruttan, 1985).
Amount of Production Formation Function
The function type assumed is the Cobb-Douglas's type production function. The function toestimate is the next formula (Tsuchiya, 1976).
X = Ａ・L＾α・V＾γ・S＾δ
（0 <α, 0 <γ, 0 <δ, α+γ+δ ≒ 1 ）(5)

It is presented by the following:
lnX = lnA+αlnL+γlnV+δlnS+ζ

(6)

where X is output; L labor input; V fertilizer input; S land input.
Examination of the Contribution of the Production Input
The marginal productivity of input X is MPX. P is an output price. PX is X input price. In the caseof ①: MPX> (PX/P), the input of X is under. In the case of ②: MPX = (PX/P), the input of thefactor of production is equilibrium. In the case of ③: MPX <(PX/P), the input of the agent ofproduction is excess. It is represented by the following. ④ Value of production elasticity ofX>factor shares X. ⑤Value of production elasticity of X= factor shares X. ⑥Value of production
elasticity of X<factor shares X.
Data CollectionⒸ ISERD

35

IJERD – International Journal of Environmental and Rural Development (2022) 13-1

As for the data, Miyuki Ishibashi et al,"Imperial Agricultural Organization cost of rice production
investigation collection", the sample data are thyme series data for 24 years. The index to use forestimation is an unpolished rice yield ("koku"≒140-150kg), product value (Japanese yen), seed
costs, manure costs, wages, material costs, labor force of livestock costs, agricultural machinery
costs, building for agriculture. These variables are numerical value per "tan" (≒10a). The variabledata of the measurement of the amount of production formation function are as follows. Q is theamount of production. Here, it adopted an unpolished rice yield. L is wages. It adopted the total offamily labor and the employment labor. V is an ordinary input. It adopted seed and sapling costs,manure costs, agriculture drug costs, and the total of material costs. S is rice paddy area. It ismeasured using the variable shown above. The data of the Miyuki Ishibashi great work "Imperial
Agricultural Organization cost of rice production investigation collection" were displayed by a"tan," and therefore it took advantage, and, on the occasion of a measurement, the numerical value
was converted the planted area around one farmhouse. Therefore, the numerical value multiplied
the planted area by it and converted it into numerical value per one farmhouse.
RESULTS AND DISCUSSION
The Development of Rice Production in Japan (1881-2012)
The analysis object period of this study is 1922-1944. In the history of Japanese agriculture, it
confirms a characteristic of this time. A change of the rice production in Japan from 1881 through2012 is shown in the figure. 1881 is standard age (1881 = 1.0). The development of rice productionin Japan for the period of 1881-2012 is shown in Fig. 1.
World War I brought a boom after the war for Japan. By the progress of the industrial division,
the Industrial production value overtook an agricultural production value after the World War I.
The development of the agriculture sector was delayed under the parasitic landlord system incomparison with the rapid development of the industrial sector (Teruoka, 2008). After World War
II, the Japanese economy continued rapid growth during a period from 1955 through 1973 (Higheconomic growth period). In this time, the agriculture sector drastically improved production by thespread of artificial manure, pesticide, and agricultural machines. However, the consumption of rice
was delayed, so there was overproduction. Therefore, a policy of reducing the rice acreage wasstarted in 1970 (Hayami and Yamada, 1991).
Index: 1981=1. 0
3.5
32.5
21.5
10.5

1881
1885
1890
1895
1900
1905
1910
1915
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010

0Yea rrice total a reari ce yi el d 10 per a resri ce tota l y i el dri ce suppl y per ca pi ta

Fig. 1 Development of rice production in Japan (1881-2012)Ⓒ ISERD36

IJERD – International Journal of Environmental and Rural Development (2022) 13-1

The Change of the Element Input of the Rice Production (1922-1944)
A change of the element input of the rice production from 1922 through 1944 is shown in Fig.
2. In this Figure, the change of the input standard of each agent of production is shown in thestandard in 1922 (1922 = 1.0).
Index: 1922=1. 05432101922 1924 1926 1928 1930 1932 1934 1936 1938 1940 1942 1944
1923 1925 1927 1929 1931 1933 1935 1937 1939 1941 1943

Y ea rri ce yi el dproducti ona reas eed
f erti l iz erl abormateri a l sdra f t a nima lsmachine
bui l dingFig. 2 The change of the element input of the rice production (1922-1944)
Table 1 Changes in factor shares for rice production in Japan (1922-1944)
Year

seed
fertilizer
labor
（%）
（%）
（%）
①②
③
1922
0.01470.22500.4618
1923
0.01290.20470.3835
1924
0.01000.16110.3294
1925
0.00810.14100.2265
1926
0.00820.1676
0.2392
1927
0.00800.17870.2306
1928
0.00810.17620.2454
1929
0.00820.1606
0.2421
1930
0.01210.24160.44981931
0.01030.20350.4021
1932
0.00890.15990.34201933
0.00880.17400.3275
1934
0.00810.14970.2992
1935
0.00880.14570.29741936
0.00850.14510.2762
1937
0.00950.14550.2633
1938
0.00960.15000.28191939
0.00820.13550.30581940
0.01090.19330.3753
1941
0.01050.17480.3872
1942
0.01070.14170.40491943
0.00950.13280.3571
1944
0.01120.12320.4231
Note： ⑧＝1-(①+②+③+④+⑤+⑥+⑦)

materials（%）④
0.01990.01730.01700.01290.01550.01820.02000.01540.03310.02910.02710.02450.02120.02100.02170.02230.02520.02580.03120.0316
0.03360.0315
0.0440

draft animals（%）⑤
0.0651
0.0561
0.04190.02680.03020.03330.03190.02690.05480.04900.04000.03900.03470.03500.03150.03200.03520.03860.04940.05400.05430.04990.0624machine（%）⑥
0.03140.02860.02100.01840.02610.01940.02060.02020.03740.03590.02960.02950.02600.02550.02480.02630.02830.03030.03610.03770.04080.03930.0549building（%）⑦
0.03410.03180.0259
0.01590.02040.01900.02000.01960.02930.03120.02630.02540.02320.02120.02080.02040.01930.01850.01980.02360.02400.02410.0296land（%）⑧
0.14800.2651
0.39360.55030.49280.49280.47770.50700.14200.23890.36620.37120.43780.44540.47140.48060.45050.43740.28390.28050.29000.35570.2515The Cange of Fctor Sares of the Rice Poduction (1922-1944)
Table 1 shows the change of factor shares is land, labor, fertilizer, cost of draft animals, agriculturalmachinery, materials, building for agriculture, seed in order of the average value from 1922
through 1944. The change of these factor shares becomes land, labor, manure, labor force oflivestock, agricultural machinery, materials, a building, the seed in order of a standard level. FactorⒸ ISERD

37

IJERD – International Journal of Environmental and Rural Development (2022) 13-1

share of the capital such as labor force of livestock, agricultural machinery, the building shows alow value. On the other hand, labor, land and factor share of ordinary input materials such as themanure shows a high value. The period for the analysis was the time when it could not expect theexpansion of the land area. Under such situations, the change of factor shares of the agent ofproduction shows that the following production engineering system has been developed. As for thedevelopment of production technological system, it is a technological innovations land-saving andfertilizer-using (Sawada, 1991).
The Eamination of the Estimated Result of the Amount of Production Formation Function
The measurement results of the amount of production formation function are as follows.
lnX= +0.0097 +0.1233lnL +0.3609lnV +0.3627lnS(0.0051) (0.4687)(1.4125)(0.5920)
R2 = 0.6030(7)Firstly, the value of A is 0.0097. It is supposed that this suggests the existence of the neutral
technological change. Secondly, the value of α is 0.1233. Thirdly, the value of γ is 0.3609. As forthe fourth, a value of δ is 0.3627. As for the fifth, α+γ+δ is 0.8468, and the values are less than 1. It
is similar to the linear homogeneous production function. This means that the constant returns toscale. This conclusion supports an original hypothesis. In other words, there are not the economiesof scale in this production stage.
Examination of the Contribution of the Production Input
In a C-D's type production function, a value of the production of agent of production X elasticity
and the distribution diagram of agent of production X have a characteristic to be equal. From it, theeconomical analysis of the input standard of the factors of production is possibility. It compares thevalue of the factors of production of factor share and the value of the production elasticity by theestimated result of the C-D's type amount of production formation function. And it adds
economical analysis about the element input standard of each agent of production.
As for the labor input standard, an estimate of the labor (α) for 0.1233, as for the factor shareof the labor are 1922-1930: 0.3120, 1931-1940: 0.3171, 1941-1944: 0.3931 and 1922-1944: 0.3283.
In all periods, the numerical value of factor share is higher than a value of the production of factorsof production elasticity, it is in this way supposed that the quantity of throwing down standard offactors of production is an excessive tendency.
As for the manure input standard, an estimate of the manure (γ) for 0.3609, as for the factor shareof the labor are 1922-1930: 0.1841, 1931-1940: 0.1602, 1941-1944: 0.1431 and 1922-1944: 0.1666.
In all periods, the price of the production of factors of production elasticity is higher than a value offactor shares of factors of production. It is in this way supposed that the quantity of throwing down
standard of factors of production is a too few tendencies.
As for land input standard, an estimate of the land (δ) for 0.3627, as for the factor share of the laborare 1922-1930: 0.3855, 1931-1940: 0.3983, 1941-1944: 0.2944 and 1922-1944: 0.3752.
The period of 1941-1944 years, the price of the production of factors of production elasticity
is higher than a value of factor shares of factors of production. It is supposed that the input standardof factors of production is a too few tendencies. However, in other time, as for the value of theproduction of factors of production elasticity, the value of factor share of factors of production isalmost balanced. It is supposed that the input standard of factors of production is balanced.
The results of estimate by the amount of production formation function are as follows. In theperiods of 1922-1944, the input of the labor is excess level, the input of the fertilizer is under level
and the input of the land is equilibrium level.
CONCLUSIONⒸ ISERD

38

IJERD – International Journal of Environmental and Rural Development (2022) 13-1

The purpose of this study is to elucidate the characteristics of the production structure of the riceproduction in Japan from 1922 through 1944. The measurement of factor shares of the riceproduction in the analysis period. In addition, it measures the Cobb-Douglas’s type amount ofproduction formation function. It clarifies the contribution of the production input. The changes offactor shares are as follows. The change of factor shares is land, labor, fertilizer, cost of draft
animals, agricultural machinery, materials, building for agriculture, seed in order of the averagevalue from 1922 through 1944. As for the development of production technological system, it is atechnological innovations land-saving and fertilizer-using. The results of estimate by the amount ofproduction formation function are as follows. In the periods of 1922-1944, the input of the labor isexcess level, the input of the fertilizer is under level and the input of the land is equilibrium level.
As a result of analysis, for the increase of the agricultural production, it was suggested that thedevelopment of the technique to reduce the limitation of the factor of production was important.
The development of the agriculture section is important in economic development in modern Asia.
When it thinks about a strategy of the agriculture development in modern Asia, it is suggested that
it is necessary to consider the direction of the change of the production technique.
REFERENCES
Hayami, Y. and Vernon, W.R. 1985. Agricultural development: An international perspective. Johns Hopkins
University Press, 506, 204-205.
Hayami, Y. and Yamada, S. 1991. The agricultural development of Japan, A century's perspective.
University of Tokyo Press, 276, 13-108.
Ishibashi, Y. 1961. Teikoku nokai kome seisanhi cyousa syusei. Imperial Agricultural Organization Cost ofRice Production Investigation Collection, (in Japanese).
Sawada, S. 1991. Technological progress in Japanese agriculture. Association of Agriculture and ForestryStaistics, 364, 331-364.
Teruoka, S. 2008. Agriculture in the modernization of Japan 1850-2000. Ajay Kumar Jain for Manohar
Publishers and Distributors, 375, 127-154.
Tsuchiya, K. 1976. Productivity and technological progress in Japanese agriculture. University of Tokyo
Press, 261, 40-70.

Ⓒ ISERD39