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Imperfect Competition and Total Factor Productivity Growth in U.S. Food Processing AgEcon
Azzam, Azzeddine M.; Lopez, Elena; Lopez, Rigoberto A..
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.
Tipo: Working or Discussion Paper Palavras-chave: Productivity growth; Imperfect competition; Scale economies; Food processing; Agribusiness; Industrial Organization; Productivity Analysis.
Ano: 2002 URL: http://purl.umn.edu/25147
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The Impact of Imports on Price-Cost Margins: An Empirical Illustration AgEcon
Lopez, Rigoberto A.; Lopez, Elena.
This article decomposes the impact of imports on domestic price-cost margins into separate price and cost effects. Using data from 24 food-processing industries, the empirical results show that although the direct impact of imports on prices is always negative, a positive net impact on price-cost margins occurs in industries characterized by low own-price elasticity of demand and diseconomies of scale. Further results show that the disciplining effect of imports is more preponderant the lower the degree of domestic competition.
Tipo: Working or Discussion Paper Palavras-chave: Market power; Imports; Market structure; International trade; Food industry; Agribusiness; Demand and Price Analysis; International Relations/Trade.
Ano: 2001 URL: http://purl.umn.edu/25153
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