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Plant-level dynamics and aggregate productivity growth in the Turkish meat-processing industry: Evidence from longitudinal data

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  • Mahmut Yasar

    (Department of Economics, Emory University, 306C Rich Building, Atlanta, GA 30322)

  • Roderick M. Rejesus

    (Department of Agricultural and Applied Economics, Texas Tech University, P.O. Box 42132, Lubbock, TX 79409-2132)

  • Ilhami Mintemur

    (State Institute of Statistics, Ankara, Turkey)

Abstract

The authors examine how plant-level dynamics contribute to aggregate productivity growth in the Turkish meat-processing industry. An aggregate productivity decomposition approach that utilizes plant-level longitudinal data is used to achieve this goal. Their results are consistent with the empirical literature in the sense that productivity enhancement within existing plants is the main source of aggregate productivity growth in this sector. However, their analysis generally suggests that plants that exit the meat-processing industry tend to be more productive than entering plants, especially in the posteconomic crisis period studied. Even though the latter insight is not consistent with the existing empirical literature, they show that these results tend to support R. Caballero and M. Hammour's (2000) contention that institutional factors such as industry structure (i.e., mature vs. infant industry) and economic crisis conditions (i.e., pre- vs. postcrisis periods) affect the nature of plant dynamics' contributions to aggregate productivity growth. Overall, the study's results reveal that industry-specific institutional factors must be taken into consideration when shaping policies aimed to improve and sustain aggregate productivity growth. [JEL Classifications: D24, L25, O12]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 91-107, 2006.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 22 (2006)
Issue (Month): 1 ()
Pages: 91-107

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Handle: RePEc:wly:agribz:v:22:y:2006:i:1:p:91-107

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Ricardo J. Caballero & Mohamad L. Hammour, 2000. "Institutions, Restructuring, and Macroeconomic Performance," NBER Working Papers 7720, National Bureau of Economic Research, Inc.
  2. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
  3. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
  4. Baily, Martin Neil & Bartelsman, Eric J & Haltiwanger, John, 1996. " Downsizing and Productivity Growth: Myth or Reality?," Small Business Economics, Springer, vol. 8(4), pages 259-78, August.
  5. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
  6. Sang V Nguyen & Robert H Mcguckin, 1993. "On Productivity and Plant Ownership Change: New Evidence From the LRD," Working Papers 93-15, Center for Economic Studies, U.S. Census Bureau.
  7. Ruhul Amin Salim, 2003. "Economic Liberalization and Productivity Growth: Further Evidence From Bangladesh," Oxford Development Studies, Taylor & Francis Journals, vol. 31(1), pages 85-98.
  8. John C. Haltiwanger, 1997. "Measuring and analyzing aggregate fluctuations: the importance of building from microeconomic evidence," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-78.
  9. Ericson, Richard & Pakes, Ariel, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Wiley Blackwell, vol. 62(1), pages 53-82, January.
  10. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau.
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