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Capital Formation In Food Processing

Author

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  • Gallo, Anthony E.
  • Epps, Walter B.

Abstract

This exploratory research looks at the role of capital expenditures in the food manufacturing industries in the face of industry productivity changes and industry restructuring. Food processing's position as the economy's largest manufacturing industry in shipments is compared with its share of total capital expenditures. Gross capital stock, net capital stock, gross constant stock, and net constant stock are examined to estimate changing capital base. Rates of change in multifactor and output per man hour productivity are compared with rates of change in new capital expenditures. Major industrial reorganization has taken place in food processing because of mergers, acquisitions, and leveraged buyouts. The change in capital expenditures following these transactions is examined to determine their impact on industry investment.

Suggested Citation

  • Gallo, Anthony E. & Epps, Walter B., 1994. "Capital Formation In Food Processing," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(1), pages 1-7, February.
    • Handle: RePEc:ags:jlofdr:26648
    DOI: 10.22004/ag.econ.26648
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    Keywords

    Agribusiness;

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