Persistence of firm-level profitability in the European dairy processing industry
Based on autoregressive (AR) models and Arellano-Bond dynamic panel estimation, this article analyses profit persistence in the European dairy processing industry. The sample comprises 590 dairy processors from the following five countries: Belgium, France, Italy, Spain, and the United Kingdom. The AR models indicate that cooperatives which account for around 20% of all firms in the dairy processing sector are not primarily profit oriented. In addition, the results point toward a high level of competition as profit persistence is rather low even if cooperatives are excluded. The panel model reveals that short- as well as long-run profit persistence is influenced by firm and industry characteristics.
Year of publication: |
2014
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Authors: | Hirsch, Stefan ; Hartmann, Monika |
Published in: |
Agricultural Economics. - International Association of Agricultural Economists - IAAE, ISSN 0169-5150. - Vol. 45.2014, S1, p. 53-63
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Publisher: |
International Association of Agricultural Economists - IAAE |
Saved in:
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