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Food Safety Regulation and Firm Productivity: Evidence from the French Food Industry

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  • Requillart, Vincent
  • Nauges, Celine
  • Simioni, Michel
  • Bontemps, Christophe

Abstract

The purpose of this article is to assess whether food safety regulations imposed by the European Union in the 2000s may have induced a slow-down in the productivity of firms in the food processing sector. The impact of regulations on costs and productivity has seldom been studied. This article contributes to the literature by measuring productivity change using a panel of French food processing firms for the years 1996 to 2006. To do so, we develop an original iterative testing procedure based on the comparison of the distribution of efficiency scores of a set of firms. Our results confirm that productivity decreased in the poultry processing industry at the time when safety regulation was reinforced.

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Bibliographic Info

Paper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series Congress Papers with number 124378.

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Date of creation: 2012
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Handle: RePEc:ags:aieacp:124378

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Keywords: total factor productivity; safety regulation; food processing sector; panel data; non-parametrics; Food Consumption/Nutrition/Food Safety; C14; D24; L66;

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  1. Ambec, Stefan & Cohen, Mark A. & Elgie, Stewart & Lanoie, Paul, 2011. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Discussion Papers dp-11-01, Resources For the Future.
  2. Simar, L. & Wilson, P.W., 1998. "Productivity Growth in Industrialized Countries," Papers 9810, Catholique de Louvain - Institut de statistique.
  3. Leopold Simar & Valentin Zelenyuk, 2006. "On Testing Equality of Distributions of Technical Efficiency Scores," Econometric Reviews, Taylor & Francis Journals, vol. 25(4), pages 497-522.
  4. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
  5. Steven Buccola & Fujii Yoko & Xia Yin, 2000. "Size and Productivity in the U.S. Milling and Baking Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 865-880.
  6. Bontemps, Christophe & Maigné, Elise & Réquillart, Vincent, 2010. "La productivité de l'agro-alimentaire français de 1996 à 2006," IDEI Working Papers 595, Institut d'Économie Industrielle (IDEI), Toulouse.
  7. Tulkens, H. & Vanden Eeckaut, P., . "Non-frontier measures of efficiency, progress and regress for time series data," CORE Discussion Papers RP -1159, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. C.J. O’Donnell, 2011. "Econometric Estimation of Distance Functions and Associated Measures of Productivity and Efficiency Change," CEPA Working Papers Series WP012011, School of Economics, University of Queensland, Australia.
  9. Wilson, Paul W, 1993. "Detecting Outliers in Deterministic Nonparametric Frontier Models with Multiple Outputs," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(3), pages 319-23, July.
  10. Paul Lanoie & Michel Patry & Richard Lajeunesse, 2008. "Environmental regulation and productivity: testing the porter hypothesis," Journal of Productivity Analysis, Springer, vol. 30(2), pages 121-128, October.
  11. O'Donnell, Christopher J., 2010. "Measuring and decomposing agricultural productivity and profitability change," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), December.
  12. Tristen Hayfield & Jeffrey S. Racine, . "Nonparametric Econometrics: The np Package," Journal of Statistical Software, American Statistical Association, vol. 27(i05).
  13. Christian Fischer & Sebastian Schornberg, 2007. "Assessing the competitiveness situation of EU food and drink manufacturing industries: An index-based approach," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 473-495.
  14. Cuesta, Rafael A. & Lovell, C.A. Knox & Zofío, José L., 2009. "Environmental efficiency measurement with translog distance functions: A parametric approach," Ecological Economics, Elsevier, vol. 68(8-9), pages 2232-2242, June.
  15. C.J. O'Donnell, 2008. "An aggregate quantity-price framework for measuring and Decomposing productivity and profitability change," CEPA Working Papers Series WP072008, School of Economics, University of Queensland, Australia.
  16. Goodwin, Harold L., Jr. & Shiptsova, Rimma, 2000. "Welfare Losses From Food Safety Regulation In The Poultry Industry," Staff Papers 15780, University of Arkansas, Department of Agricultural Economics and Agribusiness.
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Cited by:
  1. Peroni, Chiara & DiMaria, Charles Henri, 2012. "A new unit labour cost changes decomposition Four pillars of cost competitiveness recovery," MPRA Paper 38670, University Library of Munich, Germany.
  2. Charles-Henri Dimaria & Chiara Peroni, 2012. "Unit labor cost and productivity recovery under non neutral technical change," Working Papers halshs-00826351, HAL.

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