Public infrastructure, input efficiency and productivity growth in the Canadian food processing industry
AbstractCanadian 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 infrastructureâs 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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Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 29 (2008)
Issue (Month): 1 (February)
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Web page: http://www.springerlink.com/link.asp?id=100296
Food processing; Infrastructure capital; Productivity growth; D24; L66;
Other versions of this item:
- Jeffrey I. Bernstein & Theofanis P. Mamuneas, 2007. "Public Infrastructure, Input Efficiency and Productivity Growth in the Canadian Food Processing Industry," Working Papers 0703, Florida International University, Department of Economics.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
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