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

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

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  1. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  2. 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.
  3. Giulio Cainelli, 2008. "Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 39(3), pages 414-435.
  4. Todd M. Gabe, 2005. "Industry Agglomeration and Investment in Rural Businesses," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 89-103.
  5. Stephan J. Goetz, 1997. "State- and County-Level Determinants of Food Manufacturing Establishment Growth: 1987–93," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 838-850.
  6. Glenn Ellison & Edward L. Glaeser & William Kerr, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," NBER Working Papers 13068, National Bureau of Economic Research, Inc.
  7. Daniel Graham & H. Kim, 2008. "An empirical analytical framework for agglomeration economies," The Annals of Regional Science, Springer, vol. 42(2), pages 267-289, June.
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Cited by:
  1. Lakner, Sebastian, 2010. "Efficiency Cluster in Organic Grassland Farming in Germany – Methodological and Practical Implications," 116th Seminar, October 27-30, 2010, Parma, Italy 95053, European Association of Agricultural Economists.
  2. Marasteanu, I. Julia & Jaenicke, Edward C., 2013. "Agglomeration and Spatial Dependence in Certified Organic Operations in the United States," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149551, Agricultural and Applied Economics Association.

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