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Firm Survival and Quality Labels in the Food Industry

Christophe Bontemps (), Zohra Mechemache () and Michel Simioni

No 61377, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: Both industry and firm characteristics influence the survival of a firm in an industry over time. Aging, size, structure are factors often discussed in the literature, but public intervention effects -through public quality labeling for example - may also have an effect that is examined here. We use data on French firms producing cheese under public quality label or not over the period 1990-2006. We perform a nonparametric estimation using Kaplan-Meier estimators as well as proportional hazard rate models. Our results confirm existing findings on firm survival determinants. We also shed light on the effect of public intervention into that industry. More precisely, our focus on public quality labeling in the French cheese industry shows that quality label reduces the risk of exiting for firms and more particulary for small firms. In other words, public intervention in this industry is well designed to increase the competitiveness of small firms enabling the coexistence on the market of both small and large firms.

Keywords: Agricultural and Food Policy; Industrial Organization; Production Economics (search for similar items in EconPapers)
Pages: 24
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61377

DOI: 10.22004/ag.econ.61377

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