Public Infrastructure, Input Efficiency and Productivity Growth in the Canadian Food Processing Industry
AbstractCanadian food processing is an important manufacturing industry, accounting for 13 percent of shipments. By its nature food processing depends on infrastructure capital. Our objective is to estimate infrastructure’s effects on input requirements, cost and productivity. The increase in capital and decrease in materials were respectively 2.5 and 3 times greater than the -0.07 infrastructure elasticity of labor. Infrastructure investment was cost-reducing by inducing reductions in employment and intermediate inputs. A 1 percent increase caused cost to decline by 0.16 percent. Infrastructure capital was a major contributor to productivity, annually contributing 0.5 percentage points. This was nearly double TFP growth.
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Bibliographic InfoPaper provided by Florida International University, Department of Economics in its series Working Papers with number 0703.
Length: 32 pages
Date of creation: Mar 2007
Date of revision:
Food Processing; Infrastructure Capital; Productivity Growth.;
Other versions of this item:
- Jeffrey Bernstein & Theofanis Mamuneas, 2008. "Public infrastructure, input efficiency and productivity growth in the Canadian food processing industry," Journal of Productivity Analysis, Springer, vol. 29(1), pages 1-13, February.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-03-24 (Agricultural Economics)
- NEP-ALL-2007-03-24 (All new papers)
- NEP-EFF-2007-03-24 (Efficiency & Productivity)
- NEP-PBE-2007-03-24 (Public Economics)
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