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Agglomeration Externalities and Technical Efficiency in Pig Production

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  • Larue, Solene
  • Latruffe, Laure

Abstract

The objective of the paper is to assess the effects of agglomeration on technical efficiency of French pig farms. We use a two-stage method to evaluate the effects of agglomeration on technical efficiency. The first stage consists in calculating pig activity’s efficiency scores with the non-parametric method Data Envelopment Analysis (DEA). The second stage is a truncated regression of these scores on agglomeration variables. Data are for 899 French pig producers in 2004. Results suggest that these farms were as much affected by positive agglomeration externalities (that are knowledge spillovers due to farms’ density, and also arise from farms’ closeness to downstream market) as any other businesses. There was however no evidence of negative externalities in the form of constraints in farmers’ land demand due to legal disposition relating to manure spreading.

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  • Larue, Solene & Latruffe, Laure, 2008. "Agglomeration Externalities and Technical Efficiency in Pig Production," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44272, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44272
    DOI: 10.22004/ag.econ.44272
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    1. Larue, Solene & Abildtrup, Jens & Schmitt, Bertrand, 2008. "Modelling the Spatial Structure of Pig Production in Denmark," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44281, European Association of Agricultural Economists.
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    9. Isabelle Piot-Lepetit & Monique Moing, 2007. "Productivity and environmental regulation: the effect of the nitrates directive in the French pig sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 433-446, December.
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    Cited by:

    1. Kenichi Kashiwagi & Erina Iwasaki, 2020. "Effect of agglomeration on technical efficiency of small and medium‐sized garment firms in Egypt," African Development Review, African Development Bank, vol. 32(1), pages 14-26, March.

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    Industrial Organization; Livestock Production/Industries;

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