Investment age and dynamic productivity growth in the Spanish food processing industry

This article analyzes the relation between investment age, measured as the number of years since investment spike, and dynamic productivity growth and its components, which include dynamic technical change, dynamic inefficiency change, and dynamic scale inefficiency change. The empirical application focuses on firm-level data for the Spanish food processing industry coveringthe period from 1996 to 2011. This investigation of the impact of firms’ investment decisions on productivity growth employs a dynamic production framework and analyzes the impact of these decisions on the components of dynamic productivity growth. Our findings show that dynamic productivity growth is negatively affected by investment spikes in both the meat processing and oils and fats industries, and that dynamic inefficiency change initially falls just after the infusion of large investment for oils and fats firms, but then grows as the firms acquire experience with this investment. We further find that investment spikes lead to improvements in dynamic technical change and worsening in dynamic technical inefficiency change in the meat processing industry, while dynamic scale inefficiency change was negatively impacted in both industries

Input-Specific Dynamic Productivity Change: Measurement and Application to European Dairy Manufacturing Firms

We propose a new method for measuring and decomposing input-specific productivity change in a dynamic context. The resulting input-specific dynamic Luenberger productivity change indicator is decomposed to identify the contributions of inputspecific dynamic technical, technical inefficiency and scale inefficiency changes. The empirical application of the paper focuses on panel data of large firms in the European dairy processing industry over the period 2005–2012. The results show similar patterns for dynamic input-specific productivity change and its components for labour across European regions (Eastern, Western and Southern), while differences between regions are found regarding materials and investments

Corporate social responsibility and dynamic productivity change in the US food and beverage manufacturing industry

This study examines the relationship between corporate social responsibility (CSR) and dynamic productivity change of each input employed and investment undertaken in the US food and beverage manufacturing industry. We compute input‐ and investment‐specific dynamic Luenberger indicators and decompose them into the contributions of input‐ and investment‐specific dynamic technical inefficiency changes and dynamic technological changes. We then relate these indicators to an overall CSR measure and aspect‐specific CSR measures (governance, environment, and social). Our results confirm that the association between CSR and productivity change has different signs and effects on specific inputs or investments. We also find that only certain aspects of CSR participate in the association between CSR and dynamic productivity change and its components. [EconLit citations: C61, D24, L66, M14]