Investment Age and Dynamic Productivity Growth in the Spanish Food Processing Industry
Magdalena Kapelko,
Alfons Oude Lansink () and
Spiro Stefanou
American Journal of Agricultural Economics, 2016, vol. 98, issue 3, 946-961
Abstract:
This article analyzes the relation between investment age, measured as the number of years since investment spike, and dynamic productivity growth and its components, which include dynamic technical change, dynamic inefficiency change, and dynamic scale inefficiency change. The empirical application focuses on firm-level data for the Spanish food processing industry covering the period from 1996 to 2011. This investigation of the impact of firms' investment decisions on productivity growth employs a dynamic production framework and analyzes the impact of these decisions on the components of dynamic productivity growth. Our findings show that dynamic productivity growth is negatively affected by investment spikes in both the meat processing and oils and fats industries, and that dynamic inefficiency change initially falls just after the infusion of large investment for oils and fats firms, but then grows as the firms acquire experience with this investment. We further find that investment spikes lead to improvements in dynamic technical change and worsening in dynamic technical inefficiency change in the meat processing industry, while dynamic scale inefficiency change was negatively impacted in both industries.
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (19)
Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aav063 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:98:y:2016:i:3:p:946-961.
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().