Advanced Search
MyIDEAS: Login to save this article or follow this journal

Concentration and Innovation in the U.S. Food Industries

Contents:

Author Info

  • Gopinath Munisamy

    (Oregon State University, Corvallis, Oregon, USA)

  • Pick Daniel

    (USDA-ERS, Washington, DC, USA)

  • Li Yonghai

    (Oregon State University, Corvallis, Oregon, USA)

Abstract

We investigate the effect of industrial concentration on productivity growth, a proxy for innovation, in the U.S. food industries. Here, we search for a possible critical level of concentration, i.e., the inverted-U hypothesis beyond which its relationship with productivity can turn negative. Productivity growth is specified as function of growth in concentration and vice versa with conditioning variables. The resulting simultaneous panel model is estimated using a panel (grouped) database comprising of 36 food-processing industries and the 1964-1992 period. Results suggest the conditioned productivity-industrial concentration relationship has an inverted-U shape. The critical level of concentration, where the relationship between growth rates of productivity and concentration turns negative, appears to be 62.3, a 24% increase from the current levels. A mapping of the net effects of an increase in concentration suggests that current deadweight loss of $7.8 billion can be reduced to about $2.8 billion when concentration increases by 18% from its current level. A reassessment of the income distributional effects of concentration suggests that consumers gain from lower food prices and agricultural producers face an increase in demand, albeit in a second-best world.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.degruyter.com/view/j/jafio.2002.1.1/jafio.2002.1.1.1028/jafio.2002.1.1.1028.xml?format=INT
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 1 (2003)
Issue (Month): 1 (August)
Pages: 1-23

as in new window
Handle: RePEc:bpj:bjafio:v:1:y:2003:i:1:n:15

Contact details of provider:
Web page: http://www.degruyter.com

Order Information:
Web: http://www.degruyter.com/view/j/jafio

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pierre Blanchard & Jean-Pierre Huiban & Claude Mathieu, 2012. "The determinants of firm exit in the French food industries," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(2), pages 193-212.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bpj:bjafio:v:1:y:2003:i:1:n:15. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.