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The impact of geographical positioning on agri‐food businesses' failure considering nonlinearities

Mariluz Mate‐Sánchez‐Val

Agribusiness, 2021, vol. 37, issue 3, 612-628

Abstract: This study applies spatial econometric techniques to evaluate the effect of external economic agents located in agri‐food business environments on the probability of those businesses failing. A logistic regression model that incorporates spatial interactions has been applied to the data. In addition, the article proposes an intermediate step in the modeling process based on generalized additive models to determine the specific functional relationships between the probit model and the explanatory variables. The results reveal that geographic location has a significant effect on the probability that agri‐food companies fail to find significant nonlinearities. [EconLit Citations: G33, Q14, R10]

Date: 2021
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Handle: RePEc:wly:agribz:v:37:y:2021:i:3:p:612-628