Identifying and Measuring the Effect of Firm Clusters Among Certified Organic Processors and Handlers
AbstractThis 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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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49205.
Date of creation: Apr 2009
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firm clusters; organic; treatment effects; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development;
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