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Knowledge Capital and Cost Structure in the U.S. Food and Fiber Industries

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  • Catherine J. Morrison
  • Donald Siegel

Abstract

We explore the existence and extent of scale economies arising from three different external “knowledge capital” factors—investments in R&D, high-tech, and human capital. These relationships are evaluated for the (two- and three-digit level) food and fiber processing industries from the 1960s through the 1980s. The results generate strong evidence of scale economies but also suggest that the three knowledge capital factors have tended to reduce input use (and thus costs) for all privately demanded factors. The impacts on private capital are particularly large, although human capital appears to have a relatively large impact on labor use in the textiles industry. Copyright 1998, Oxford University Press.

Suggested Citation

  • Catherine J. Morrison & Donald Siegel, 1998. "Knowledge Capital and Cost Structure in the U.S. Food and Fiber Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 30-45.
  • Handle: RePEc:oup:ajagec:v:80:y:1998:i:1:p:30-45
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    File URL: http://hdl.handle.net/10.2307/3180266
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    Cited by:

    1. Roberto Esposti, 2003. "Public R&D investment and cost structure in Italian agriculture, 1960--1995," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(4), pages 509-537, December.
    2. Morrison Paul, Catherine J., 2000. "Productivity And Efficiency In The U.S. Food System, Or, Might Cost Factors Support Increasing Mergers And Concentration?," Working Papers 11983, University of California, Davis, Department of Agricultural and Resource Economics.
    3. Esposti, Roberto & Pierani, Pierpaolo, 2002. "Public R&D Investment and Cost Behaviour in Italian Agriculture: 1960-1995," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24974, European Association of Agricultural Economists.
    4. Roberto ESPOSTI & Pierpaolo PIERANI, 2001. "Building the Knowledge Stock: Lags, Depreciation and Uncertainty in Agricultural R&D," Working Papers 145, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Kehinde, A.L. & Aboaba, K.O., 2016. "Analysis of value addition in the processing of cassava tubers to “garri” among cottage level processors in southwestern nigeria," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249323, African Association of Agricultural Economists (AAAE).
    6. Roberto ESPOSTI & Pierpaolo PIERANI, 2005. "Price, Private Demand and Optimal Provision of Public R&D in Italian Agriculture," Working Papers 238, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. 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.
    8. Catherine Morrison Paul, 2003. "Productivity and Efficiency Measurement in Our “New Economy”: Determinants, Interactions, and Policy Relevance," Journal of Productivity Analysis, Springer, vol. 19(2), pages 161-177, April.
    9. Tveteras, Ragnar, 1999. "Learning And Technology Spillover: Productivity Convergence In Norwegian Salmon Aquaculture," 1999 Annual meeting, August 8-11, Nashville, TN 21651, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Esposti, Roberto & Pierani, Pierpaolo, 2003. "Public R&D Investment From Private And Social Perspective. An Application To Italian Agriculture, 1960-1995," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25876, International Association of Agricultural Economists.

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