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

Stéphane Blancard, Jean-Philippe Boussemart, Jean-Paul Chavas () and Hervé Leleu

Omega, 2016, vol. 63, issue C, 60-68

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.

Keywords: Specialization; Diversification; Division; Merger; Free coordination hull; Free disposal hull; Agriculture (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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DOI: 10.1016/j.omega.2015.10.002

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