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Evaluating Economic Performance of Food Manufacturing Industries: An Analysis of the U.S. Pacific Northwest States

Listed author(s):
  • Bolotova, Yuliya
  • Asiseh, Fafanyo

This study develops a simple methodology of the analysis of the effectiveness of economic performance of food manufacturing industries and applies this methodology to analyze the effectiveness of economic performance of food manufacturing industries in the U.S. Pacific Northwest States (Idaho, Oregon, and Washington). The methodology is based on five ratios constructed using U.S. Economic Census data on value added, value of shipments, number of production workers, cost of materials, and capital expenditures. A regression model is estimated to test whether the overall effectiveness of economic performance measured as the share of value added in value of shipments is a function of the effectiveness of the use of individual groups of resources (i.e. production workers, capital, and materials). The major implication of the results of econometric analysis for business decision-making is that affecting the level of the effectiveness of the use of individual groups of resources makes it possible to affect the level of the overall effectiveness of production and marketing activities.

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Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

Volume (Year): 40 (2009)
Issue (Month): 3 (November)

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Handle: RePEc:ags:jlofdr:99769
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