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Identifying and Measuring the Effect of Firm Clusters Among Certified Organic Processors and Handlers

Edward Jaenicke, Stephan Goetz, Ping-Chao Wu and Carolyn Dimitri ()

No 49205, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: This paper investigates the certified organic handler sector, a specialized component of the middle part of the farm-to-table marketing chain, and documents the impacts of firm agglomeration (or firm clusters) on firm-level performance or firm-level decisions. After accounting for endogeneity in firm clustering, our findings confirm that firm clusters have significant impacts, though the estimate of the impact depends on how a firm cluster is defined. For example, significant impacts on sales per employee range from an additional $0.17 million to $1.47 million, depending on whether a small or large number of firms is used as the minimum number to define a firm cluster.

Keywords: Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development (search for similar items in EconPapers)
Pages: 26
Date: 2009-04
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49205

DOI: 10.22004/ag.econ.49205

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