Plant-Level Dynamics and Aggregate Productivity Growth in the Meat Processing Industry: Evidence from Longitudinal Data

Agribusiness: An International Journal, 22 (1), 91–107

33 Pages Posted: 15 Jan 2005 Last revised: 17 Dec 2019

See all articles by Mahmut Yasar

Mahmut Yasar

University of Texas at Arlington - Department of Economics; Emory University - Department of Economics

Roderick M. Rejesus

North Carolina State University

Ilhami Mintemur

State Institute of Statistics

Multiple version iconThere are 2 versions of this paper

Date Written: 2006

Abstract


This paper examines how plant-level dynamics contribute to aggregate productivity growth in the Turkish meat processing industry. An aggregate productivity decomposition approach that utilizes plant-level longitudinal data is used to achieve this goal. Our results are consistent with the empirical literature in the sense that productivity enhancement within existing plants is the main source of aggregate productivity growth in this sector. However, our analysis generally suggest that plants that exit the meat processing industry tend to be more productive than entering plants, especially in the post-economic crisis period studied. Even though the latter insight is not consistent with the existing empirical literature, we show that these results tend to support Caballero and Hammour's (2000) contention that institutional factors such as industry structure (i.e. mature vs. infant industry) and economic crisis conditions (i.e. pre- vs. post-crisis periods) affects the nature of plant dynamics' contributions to aggregate productivity growth. Overall, our results reveal that industry-specific institutional factors must be taken into consideration when shaping policies aimed to improve and sustain aggregate productivity growth.

Keywords: Aggregate Productivity Decomposition, Food Industrial Organization, Plant Dynamics, Total Factor Productivity, Meat Processing Industry

JEL Classification: D24, L25, O12

Suggested Citation

Yasar, Mahmut and Rejesus, Roderick M. and Mintemur, Ilhami, Plant-Level Dynamics and Aggregate Productivity Growth in the Meat Processing Industry: Evidence from Longitudinal Data (2006). Agribusiness: An International Journal, 22 (1), 91–107, Available at SSRN: https://ssrn.com/abstract=648802

Mahmut Yasar (Contact Author)

University of Texas at Arlington - Department of Economics ( email )

701 S. West Street
Arlington, TX 76019
United States

Emory University - Department of Economics ( email )

Roderick M. Rejesus

North Carolina State University ( email )

Hillsborough Street
Raleigh, NC 27695
United States

Ilhami Mintemur

State Institute of Statistics ( email )

Akara
Turkey
(312) 410-0368 (Phone)
(312) 417-2378 (Fax)

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