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Agglomeration and Spatial Dependence in Certified Organic Operations in the United States

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  • Marasteanu, I. Julia
  • Jaenicke, Edward C.
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    Abstract

    The purpose of this paper to provide added insight into clustering as it pertains to the United States organic sector. I identify clusters of United States certified organic operations by showing how a formal definition of spatial clusters can emerge from an estimated model that accounts for spatial dependency. I also analyze how county-level variables impact the distribution of certified organic operations while controlling for spatial autocorrelation. My results indicate that the spatial distribution of certified organic operations displays statistically significant spatial autocorrelation as well as spatial heterogeneity. The results also indicate that county-level factors related to policy, economics, demographics, and land assets impact the distribution of certified organic operations. As research on firm and industry agglomeration, in general, typically finds that clustering benefits economic development, the results of this paper provide motivation for further research on the formation and impact of clustering in the U.S. organic sector.

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    Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 149551.

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    Date of creation: May 2013
    Handle: RePEc:ags:aaea13:149551
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    Keywords: Organic Agriculture; Industry Agglomeration; Agribusiness; Spatial Econometrics; Agricultural Commodity Markets; Production Economics; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Crop Production/Industries; Industrial Organization;

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