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Public infrastructure, input efficiency and productivity growth in the Canadian food processing industry

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  • Jeffrey Bernstein

    ()

  • Theofanis Mamuneas

    ()

Abstract

Canadian food processing is an important manufacturing industry, accounting for 13 percent of shipments. By its nature food processing depends on infrastructure capital. Our objective is to estimate infrastructure’s effects on input requirements, cost and productivity. The increase in capital and decrease in materials were respectively 2.5 and 3 times greater than the -0.07 infrastructure elasticity of labor. Infrastructure investment was cost-reducing by inducing reductions in employment and intermediate inputs. A 1 percent increase caused cost to decline by 0.16 percent. Infrastructure capital was a major contributor to productivity, annually contributing 0.5 percentage points. This was nearly double TFP growth.

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File URL: http://hdl.handle.net/10.1007/s11123-007-0063-5
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Bibliographic Info

Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 29 (2008)
Issue (Month): 1 (February)
Pages: 1-13

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Handle: RePEc:kap:jproda:v:29:y:2008:i:1:p:1-13

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Web page: http://www.springerlink.com/link.asp?id=100296

Related research

Keywords: Food processing; Infrastructure capital; Productivity growth; D24; L66;

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References

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  8. M. Ishaq Nadiri & Theofanis P. Mamuneas, 1991. "The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries," NBER Working Papers 3887, National Bureau of Economic Research, Inc.
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Cited by:
  1. Chris Ross, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Food Manufacturing Subsector," CSLS Research Reports 2011-07, Centre for the Study of Living Standards.
  2. Ian Rowlands, 2011. "Ancillary impacts of energy-related climate change mitigation options in Africa’s least developed countries," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 16(7), pages 749-773, October.

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