Determinants of Food Industry Performance: Survey Data and Regressions for Denmark
AbstractThis paper investigates empirically the determinants of firms' performance in the agri-food sector by using recent survey data for Denmark. Treating sales per employee as a proxy for value added, we estimate several bootstrapped regression models to draw conclusions on the marginal effects of potential performance determinants such as the form and nature of ownership, stage of the food chain and commodity sector, new product development, staff quality, firms' competitive stance, and elements of firms' strategy. To draw robust inferences we apply, besides the ordinary heteroscedasticity-corrected Tobit maximum likelihood estimator, a non-parametric least absolute deviations estimator (LAD/CLAD) based on a quantile regression procedure. The results indicate that we cannot reject the hypothesis of no influence of dominant orientation on value added. Rather, firms' focus on human capital, stage and commodity sector better explains their value addition. We reject the hypothesis that regional networks have no influence on value added. Location in �rhus, emphasis on human capital and the negative influence of outsourcing on value added all provide supporting evidence. We reject the hypothesis of no influence of foreign direct investment (FDI), and moreover propose that FDI has targeted the Danish domestic market as a source of value added. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The Agricultural Economics Society.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Agricultural Economics.
Volume (Year): 59 (2008)
Issue (Month): 3 (09)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X
Other versions of this item:
- Furtan, William Hartley & Sauer, Johannes, 2008. "Determinants Of Food Industry Performance – Survey Data And Regressions For Denmark," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36851, Agricultural Economics Society.
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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