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Potential gains from specialization and diversification further to the reorganization of activities

Author

Listed:
  • Stéphane Blancard

    () (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement)

  • Jean-Philippe Boussemart

    () (UFR MIME - UFR de Mathématiques, Informatique, Management, Economie - Université de Lille, Sciences Humaines et Sociales, IESEG - School of Management, LEM - Lille économie management - LEM - UMR 9221 - Université de Lille - UCL - Université catholique de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Paul Chavas
  • Herve Leleu

    () (Economy - UCL - Université catholique de Lille, LEM - Lille économie management - LEM - UMR 9221 - Université de Lille - UCL - Université catholique de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

In economic activities, two main forces guide firm and market structures: specialization and diversification. This paper provides new insights on this topic. We propose measuring gains due to simulated division and/or merger processes of firms. Potential gains come from a reorganization of activities through specialization/diversification and/or size effects. From a database of French farms, our findings demonstrate that even if both processes are beneficial for farming systems, the division gains outweigh the gains obtained by a merger. Moreover, mix changes are more important following a division than following a merger, implying more specialization gains than diversification gains.

Suggested Citation

  • Stéphane Blancard & Jean-Philippe Boussemart & Jean-Paul Chavas & Herve Leleu, 2016. "Potential gains from specialization and diversification further to the reorganization of activities," Post-Print hal-01533526, HAL.
  • Handle: RePEc:hal:journl:hal-01533526
    DOI: 10.1016/j.omega.2015.10.002
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01533526
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