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Patterns of Productivity Growth in the Norwegian Salmon Farming Industry


  • Tveterås, Ragnar

    () (Department of Business Administration)

  • Heshmati, Almas

    () (Dept. of Economic Statistics, Stockholm School of Economics)


This paper is concerned with empirical measurement of patterns of productivity growth by means of competing panel data models of technical change. We argue that short term analysis must rely on models of technical change which are more flexible than the standard time trend model, because biophysical shocks and shifting market conditions lead to shifts in the rate of technical change from year to year. Based on empirical results from an unbalanced panel of 560 Norwegian salmon farms for the period 1985-93 we also find that flexible models of technical change are the most appropriate for short term analysis of productivity growth. Our results indicate that market conditions may be as important as biophysical shocks, such as disease outbreaks and weather shocks, for the estimated rates of productivity growth. Contrary to standard hypotheses in the literature we find a negative relationship between industry price-cost margin and productivity growth, probably due to a reduced level of on-farm innovation and less investments in improved technologies under depressed economic conditions.

Suggested Citation

  • Tveterås, Ragnar & Heshmati, Almas, 1999. "Patterns of Productivity Growth in the Norwegian Salmon Farming Industry," SSE/EFI Working Paper Series in Economics and Finance 301, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0301

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    References listed on IDEAS

    1. Wu, Yangru, 1996. "Are Real Exchange Rates Nonstationary? Evidence from a Panel-Data Test," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(1), pages 54-63, February.
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    3. Papell, David H., 1997. "Searching for stationarity: Purchasing power parity under the current float," Journal of International Economics, Elsevier, vol. 43(3-4), pages 313-332, November.
    4. Coakley, Jerry & Fuertes, Ana Maria, 1997. "New panel unit root tests of PPP," Economics Letters, Elsevier, vol. 57(1), pages 17-22, November.
    5. Quah, Danny, 1994. "Exploiting cross-section variation for unit root inference in dynamic data," Economics Letters, Elsevier, vol. 44(1-2), pages 9-19.
    6. Culver, Sarah E & Papell, David H, 1997. "Is There a Unit Root in the Inflation Rate? Evidence from Sequential Break and Panel Data Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(4), pages 435-444, July-Aug..
    7. MacDonald, Ronald, 1996. "Panel unit root tests and real exchange rates," Economics Letters, Elsevier, vol. 50(1), pages 7-11, January.
    8. Oh, Keun-Yeob, 1996. "Purchasing power parity and unit root tests using panel data," Journal of International Money and Finance, Elsevier, vol. 15(3), pages 405-418, June.
    9. Song, Frank M. & Wu, Yangru, 1998. "Hysteresis in unemployment: Evidence from OECD countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(2), pages 181-192.
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    Cited by:

    1. Kristin Roll, 2013. "Measuring performance, development and growth when restricting flexibility," Journal of Productivity Analysis, Springer, vol. 39(1), pages 15-25, February.
    2. Straume, Hans-Martin, 2013. "Currency invoicing in Norwegian salmon export," Working Papers in Economics 11/13, University of Bergen, Department of Economics.
    3. Lundmark, Robert & Soderholm, Patrik, 2004. "Estimating and decomposing the rate of technical change in the Swedish pulp and paper industry: A general index approach," International Journal of Production Economics, Elsevier, vol. 91(1), pages 17-35, September.

    More about this item


    Firm-specific technical change; productivity growth; market conditions; salmon farming;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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