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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.

Suggested Citation

  • Jaenicke, Edward C. & Goetz, Stephan J. & Wu, Ping-Chao & Dimitri, Carolyn, 2009. "Identifying and Measuring the Effect of Firm Clusters Among Certified Organic Processors and Handlers," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49205, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea09:49205
    DOI: 10.22004/ag.econ.49205
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    References listed on IDEAS

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    4. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
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    Cited by:

    1. 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.
    2. 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.
    3. Chen-Fu Lu & Chia-Yi Cheng, 2019. "Impacts of Spatial Clusters on Certified Organic Farming in Taiwan," Sustainability, MDPI, vol. 11(9), pages 1-13, May.
    4. Marasteanu, I. Julia & Jaenicke, Edward C., 2014. "Clusters of Organic Operations and their Impact on Regional Economic Growth in the United States," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170336, Agricultural and Applied Economics Association.

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    Keywords

    Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development;
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