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Food Safety Regulation and Firm Productivity:Evidence from the French Food Industry

  • Bontemps, Christophe


  • Nauges, Céline


  • Réquillart, Vincent


  • Simioni, Michel


The purpose of this article is to assess whether food safety regulations imposed by the European Union in the 2000s may have induced a slow-down in the productivity of firms in the food processing sector. The impact of regulations on costs and productivity has seldom been studied. This article contributes to the literature by measuring productivity change using a panel of French food processing firms for the years 1996 to 2006. To do so, we develop an original iterative testing procedure based on the comparison of the distribution of efficiency scores of a set of firms. Our results confirm that productivity decreased in two major food processing sectors (poultry and cheese) at the time when safety regulation was reinforced.

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Paper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 12.16.373.

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Date of creation: Jan 2012
Date of revision:
Handle: RePEc:ler:wpaper:26540
Contact details of provider: Postal: manufacture des Tabacs, 21 allée de brienne, 31200 Toulouse
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  1. Simar, L. & Wilson, P.W., 1998. "Productivity Growth in Industrialized Countries," Papers 9810, Catholique de Louvain - Institut de statistique.
  2. Steven Buccola & Fujii Yoko & Xia Yin, 2000. "Size and Productivity in the U.S. Milling and Baking Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 865-880.
  3. Paul Lanoie & Michel Patry & Richard Lajeunesse, 2008. "Environmental regulation and productivity: testing the porter hypothesis," Journal of Productivity Analysis, Springer, vol. 30(2), pages 121-128, October.
  4. Leopold Simar & Valentin Zelenyuk, 2006. "On Testing Equality of Distributions of Technical Efficiency Scores," Econometric Reviews, Taylor & Francis Journals, vol. 25(4), pages 497-522.
  5. Bontemps, Christophe & Maigné, Elise & Réquillart, Vincent, 2010. "La productivité de l'agro-alimentaire français de 1996 à 2006," TSE Working Papers 10-143, Toulouse School of Economics (TSE).
  6. Ambec, Stefan & Cohen, Mark & Elgie, Stewart & Lanoie, Paul, 2010. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," TSE Working Papers 10-215, Toulouse School of Economics (TSE).
  7. Wilson, Paul W, 1993. "Detecting Outliers in Deterministic Nonparametric Frontier Models with Multiple Outputs," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(3), pages 319-23, July.
  8. Tulkens, Henry & Vanden Eeckaut, Philippe, 1995. "Non-frontier measures of efficiency, progress and regress for time series data," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 83-97, April.
  9. Tristen Hayfield & Jeffrey S. Racine, . "Nonparametric Econometrics: The np Package," Journal of Statistical Software, American Statistical Association, vol. 27(i05).
  10. Christian Fischer & Sebastian Schornberg, 2007. "Assessing the competitiveness situation of EU food and drink manufacturing industries: An index-based approach," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 473-495.
  11. Goodwin, Harold L., Jr. & Shiptsova, Rimma, 2000. "Welfare Losses From Food Safety Regulation In The Poultry Industry," Staff Papers 15780, University of Arkansas, Department of Agricultural Economics and Agribusiness.
  12. Munisamy Gopinath, 2003. "Cross-country Differences in Technology: The Case of the Food Processing Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 97-107, 03.
  13. Cuesta, Rafael A. & Lovell, C.A. Knox & Zofío, José L., 2009. "Environmental efficiency measurement with translog distance functions: A parametric approach," Ecological Economics, Elsevier, vol. 68(8-9), pages 2232-2242, June.
  14. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
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