Agglomeration Externalities and Technical Efficiency in Pig Production

Solène Larue and Laure Latruffe

No 44272, 2008 International Congress, August 26-29, 2008, Ghent, Belgium from European Association of Agricultural Economists

Abstract: The objective of the paper is to assess the effects of agglomeration on technical efficiency of French pig farms. We use a two-stage method to evaluate the effects of agglomeration on technical efficiency. The first stage consists in calculating pig activity’s efficiency scores with the non-parametric method Data Envelopment Analysis (DEA). The second stage is a truncated regression of these scores on agglomeration variables. Data are for 899 French pig producers in 2004. Results suggest that these farms were as much affected by positive agglomeration externalities (that are knowledge spillovers due to farms’ density, and also arise from farms’ closeness to downstream market) as any other businesses. There was however no evidence of negative externalities in the form of constraints in farmers’ land demand due to legal disposition relating to manure spreading.

Keywords: Industrial Organization; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 11
Date: 2008
New Economics Papers: this item is included in nep-eff and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Agglomeration externalities and technical efficiency in pig production (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae08:44272

DOI: 10.22004/ag.econ.44272

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