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Quality labels and firm survival: some first empirical evidence

Christophe Bontemps (), Zohra Mechemache () and Michel Simioni ()
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Michel Simioni: GREMAQ - Groupe de recherche en économie mathématique et quantitative - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRA - Institut National de la Recherche Agronomique - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées

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Abstract: European Union regulation on quality food products (protected designations of origin (PDO) labelling) is expected to sustain competitiveness within the agricultural sector. This paper examines the impact of this policy on the survival of cheese firms over the period 1990–2006 in France. We show that such a policy (Appellation d'Origine Controlée) reduces exiting risk for smaller firms. However, smaller firms still have a lower survival rate compared with larger ones that cannot be compensated by the quality label effect.

Date: 2013
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Published in European Review of Agricultural Economics, Oxford University Press (OUP), 2013, 40 (3), pp.413- 439. ⟨10.1093/erae/jbs034⟩

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DOI: 10.1093/erae/jbs034

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