The Effects of Productivity and Demand-Specific Factors on Plant Survival and Ownership Change in the U.S. Poultry Industry

34 Pages Posted: 1 Aug 2015

See all articles by Tengying Weng

Tengying Weng

Capital One Financial Corporation

Tom Vukina

North Carolina State University - Department of Agricultural & Resource Economics

Xiaoyong Zheng

North Carolina State University

Date Written: July 1, 2015

Abstract

In this paper we study the productivity-survival link in the U.S. poultry processing industry using the longitudinal data constructed from five Censuses of Manufactures between 1987 and 2007. First, we study the effects of physical productivity and demand-specific factors on plant survival and ownership change. Second, we analyze the determinants of the firm-level expansion. The results show that higher demand-specific factors decrease the probability of exit and increase the probability of ownership change. The effect of physical productivity on the probability of exit or ownership change is generally insignificant. Also, firms with higher demand-specific factors have higher probability to expand whereas the average firm-level physical productivity turns out to be an insignificant determinant of firm expansion.

Keywords: Productivity; Demand-specific Factors; Poultry

JEL Classification: L66; D24

Suggested Citation

Weng, Tengying and Vukina, Tomislav and Zheng, Xiaoyong, The Effects of Productivity and Demand-Specific Factors on Plant Survival and Ownership Change in the U.S. Poultry Industry (July 1, 2015). US Census Bureau Center for Economic Studies Paper No. CES-WP-15-20, Available at SSRN: https://ssrn.com/abstract=2636559 or http://dx.doi.org/10.2139/ssrn.2636559

Tengying Weng (Contact Author)

Capital One Financial Corporation ( email )

1680 Capital One Dr.
Mclean, VA Virginia 22102
United States

Tomislav Vukina

North Carolina State University - Department of Agricultural & Resource Economics ( email )

Box 8109
3332 Nelson Hall
Raleigh, NC 27695-8109
United States
919-515-5864 (Phone)
919-515-6268 (Fax)

Xiaoyong Zheng

North Carolina State University ( email )

Box 8109
3332 Nelson Hall
Raleigh, NC 27695-8109
United States
919-515-4543 (Phone)
919-515-6268 (Fax)

HOME PAGE: http://www4.ncsu.edu/~xzheng

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