Technology structure and productivity change in the U.S. meat products industry Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/mc87pt12c

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  • The performance of the meat products industry, the largest food processing sector in the U.S. in terms of shipment value, is an important issue. A key indicator of its performance is productivity growth, which results in reduction in the cost of production at given input prices. The present study employs a general econometric model to analyze the technology structure and productivity change in the U.S. meat products industry at the SIC 4-digit level, allowing for short-run fixity of capital and non-competitive behavior in the output market. Empirical results suggest that the rate of productivity growth, both in the short run and in the long run, exhibited a generally declining trend over the study period. Specifically, from 1973 to 1994, the absolute value of the short-run dual rate of productivity growth dropped from 0.791% to 0.278%, 1.114% to 0.506%, 0.982% to 0.491%, and 1.117% to 0.560% in SIC 2011, SIC 2013, SIC 2016, and SIC 2017, respectively. Similarly, from 1973 to 1994, these four subsectors experienced a decrease in the absolute value of the long-run dual rate of productivity growth from 0.920% to 0.193%, 1.226% to 0.409%, 1.201% to 0.411%, and 1.3 13% to 0.55 1%, respectively. In all four subsectors. the short-run technological change has been labor-saving and material-using. The long-run one has been material-saving and capital-using in all four subsectors, and labor-using in SIC 2011 but typically labor-saving in all the other three subsectors. There is no significant market power in the output market of the meat products industry.
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