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Identifying and Measuring the Effect of Firm Clusters Among Certified Organic Processors and Handlers

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Author Info
Jaenicke, Edward C.
Goetz, Stephan J.
Wu, Ping-Chao
Dimitri, Carolyn
Abstract

This paper investigates the certified organic handler sector, a specialized component of the middle part of the farm-to-table marketing chain, and documents the impacts of firm agglomeration (or firm clusters) on firm-level performance or firm-level decisions. After accounting for endogeneity in firm clustering, our findings confirm that firm clusters have significant impacts, though the estimate of the impact depends on how a firm cluster is defined. For example, significant impacts on sales per employee range from an additional $0.17 million to $1.47 million, depending on whether a small or large number of firms is used as the minimum number to define a firm cluster.

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Publisher Info
Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49205.

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Date of creation: Apr 2009
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Handle: RePEc:ags:aaea09:49205

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Related research
Keywords: firm clusters; organic; treatment effects; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development;

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  1. Davis, David E. & Schluter, Gerald E., 2005. "Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(03), December. [Downloadable!]
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  2. William Kerr & Edward Glaeser & Glenn Ellison, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," Working Papers 07-13, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  3. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 545-546, August. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.


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