Imperfect Competition and Total Factor Productivity Growth in U.S. Food Processing
This article examines the role of imperfect competition in determining total factor productivity growth (TFPG) by bringing together a New Empirical Industrial Organization (NEIO) model and the TFPG model of Nadiri and Mamuneas (1998). Applying the integrated model to 1973-92 data from 29 food processing industries revealed that changes in markups, economies of scale, and demand growth contributed positively to TFPG while the disembodied technical change was a negative contributor. Furthermore, the TFPG estimates are starkly different from the conventional (Solow's residual) TFPG measures, underscoring the need to account for imperfect competition, returns to scale, and demand in analyses of this type.
|Date of creation:||2002|
|Contact details of provider:|| Postal: 1376 Storrs Road, U-21, Storrs, Connecticut 06269-4021|
Web page: http://www.zwickcenter.uconn.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
- Nickell, Stephen J, 1996.
"Competition and Corporate Performance,"
Journal of Political Economy,
University of Chicago Press, vol. 104(4), pages 724-746, August.
- Nickell, S.J., 1993. "Competition and Crporate Performance," Economics Series Working Papers 99155, University of Oxford, Department of Economics.
- Stephen Nickell, 1993. "Competition and Corporate Performance," CEP Discussion Papers dp0182, Centre for Economic Performance, LSE.
- Pagoulatos, Emilio & Sorensen, Robert, 1986. "What determines the elasticity of industry demand?," International Journal of Industrial Organization, Elsevier, vol. 4(3), pages 237-250, September.
- Hanoch, Giora, 1975. "The Elasticity of Scale and the Shape of Average Costs," American Economic Review, American Economic Association, vol. 65(3), pages 492-497, June.
- Gort, Michael & Sung, Nakil, 1999. "Competition and Productivity Growth: The Case of the U.S. Telephone Industry," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 678-691, October.
- Sanjib Bhuyan & Rigoberto A. Lopez, 1997. "Oligopoly Power in the Food and Tobacco Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1035-1043.
- Olson, Dennis O. & Shieh, Yeung-Nan, 1989. "Estimating functional forms in cost-prices," European Economic Review, Elsevier, vol. 33(7), pages 1445-1461, September.
- Rigoberto Lopez & Azzeddine Azzam & Carmen Lirón-España, 2002. "Market Power and/or Efficiency: A Structural Approach," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(2), pages 115-126, March.
- Morrison, Catherine J, 1992. "Unraveling the Productivity Growth Slowdown in the United States, Canada and Japan: The Effects of Subequilibrium, Scale Economies and Markups," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 381-393, August. Full references (including those not matched with items on IDEAS)