A mosaic type of development - the Agri-food Districts experience in Italy

The Italian Industrial Districts (IDs) are now considered in the national and international literature as one of the main factors of the successful and rapid industrial development of Italy after the Second World War. In this paper we outline the general characteristics of the IDs approach and then the distinctive figures of the agrifood districts. A mosaic type of development characterised the geographical distribution of the different agrifood districts in the Italian experience. The different origins of agrifood districts often determines their production and structural characteristics of firms, with a relevant role of SMEs. In many cases, these districts originated from handcraft traditions and specific local demand. Their specialized production is often related to typical or high-quality products. The increasing demand for quality and typical food products might widen the possibility of developing local and regional food districts. In the second part of the paper, we have evaluated the economic performance and technical efficiency of a panel of firms in the meat sector which belong or not to the districts, for the period 1998-2002. Some very interesting results have been obtained from the economic and financial analysis on balance sheets of a large number of firms in the meat processing. The stochastic production frontier has been utilized to measure the 'district effect'. We have noticed that in the last years, the 'district effect' has been reducing according to the general difficulties of Italian industrial sector.Agri-Food Districts, Italian Industrial Districts (IDs), Technical efficiency of a panel of firms, Economic Development, International Development, A1, C23, O1, Q10, Q17,

A Mosaic Type of Development: The Agri-Food Districts Experience in Italy

The Italian Industrial Districts (IDs) are now considered in the national and international literature as one of the main factors of the successful and rapid industrial development of Italy after the Second World War. In this paper we outline the general characteristics of the IDs approach and then the distinctive figures of the agrifood districts. A mosaic type of development characterised the geographical distribution of the different agrifood districts in the Italian experience. The different origins of agrifood districts often determines their production and structural characteristics of firms, with a relevant role of SMEs. In many cases, these districts originated from handcraft traditions and specific local demand. Their specialized production is often related to typical or high-quality products. The increasing demand for quality and typical food products might widen the possibility of developing local and regional food districts. In the second part of the paper, we have evaluated the economic performance and technical efficiency of a panel of firms in the meat sector which belong or not to the districts, for the period 1998-2002. Some very interesting results have been obtained from the economic and financial analysis on balance sheets of a large number of firms in the meat processing. The stochastic production frontier has been utilized to measure the "district effect". We have noticed that in the last years, the "district effect" has been reducing according to the general difficulties of Italian industrial sector.Agri-Food Districts, Italian Industrial Districts (IDs), Technical efficiency of a panel of firms, Economic Development., International Development, A1, C23, O1, Q10, Q17,

Long Term Structural Changes in the EU Countries (1970-2000): Convergence or Divergence in the Agri-Food System?

The main objective of this paper is to analyse the structural changes in European Agri-food systems in the last 30 years in order to verify the presence of a convergence process towards a more homogeneous structure among EU countries. This analysis considers the relative importance of the main components of Agri-food systems (agriculture, food industry and food consumption) and how they change over time. The analysis of convergence utilise the European National Accounting Data (from the SEC2 Data Base of Eurostat) from 1970 to 2000 for twelve EU countries. We use tests of convergence on cross section data by countries, but also stochastic kernel methodologies to verify the dynamic evolution of groups of countries inside the EU. The results show there are important process of convergence among countries for the variables of the Agri-food system that are more linked to the economic development, such as the importance of agriculture and food consumption in GDP. On the other hand there are divergences on the variables more linked to the openness degree and to the competitiveness of the Agri-food system. The presence of polarisation process among groups of countries contribute to the permanence of long run structural changes among Northern and Southern countries in the EU.Agribusiness,

Economic Development, Rural Zones and Farms in China

Because of the growing influence of China, the rapid economic development and the transformation of Chinese society have attracted the attention of analysts, politicians andmass media. There are, however, many aspects of these changes that are less well known. This is not only because of the sheer size of China ‐ with a population of more than 1.3 billion – but also because of the lack of information on the enormously large and varied rural areas, where still now more than 55% of the Chinese population lives.The great reform of the Chinese economy began 30 years ago in 1978. The basic change was liberalization of foreign trade, the socalled “Open Door Policy”. This involved a deep reform of the economy and in particular of agriculture, which entailed the dismantling of the collectives and the establishment of a family‐based farming structure, the socalled “Household Responsibility System”. The rapid development of the Chinese economy in recent decades is the result of the combined effect of these reforms. However the role that reforms in agriculture and rural areas have played in this transformation have often been overlooked, and in particular the effect of reliable food supplies on a continually growing population, such as the Chinese one. The great reduction in hunger and malnutrition, which in the past affected millions of Chinese citizens, has had a decisive impact on the reduction of poverty, thus increasing the social stability of the whole country.The aim of this work is to briefly describe the characteristics of the rapid Chinese economic development, then focusing on certain elements which have been coresponsible for the unequal development across China, pointing out the territorial disparities among the over thirty Chinese provinces and metropolitan zones and especially the differences between urban and rural areas

Convergence in the Agricultural Incomes: A Comparison between the US and EU

In this paper we compare the changes in farm incomes in EU regions and US States between 1989 and 2002. The aim of this comparative analysis is highlight the patterns of convergence or divergence and how they d iffer over time. We use two recent analytical instruments: non-stationary panel analysis and dynamic distribution analysis. Both tools overcome the problems involved in using standard cross-section analysis. The results of the non-stationary panel analysis show that the EU regions are converging, and that family farm income is converging faster than net added value. In the US states the analysis shows that substantial differences in farm income persist, and there are no evident signs of convergence.Agricultural Finance,

The behaviour of food relative prices: An analysis across the European Countries

In this paper we analyze the behavior of relative food prices for a set of 24 European countries observed during the period 1996.1 - 2007.7. Using new methods for analyzing nonstationary panels, we are able to show that relative food prices have a common component which accounts for a large share of their variance. We show that this component has had a greater effects on the group of countries that adopt the Euro. We also find that countries in the Euro area are more market integrated, i.e. food prices tend to converge, than countries that have not adopted the Euro. Finally, we report that the half-live of a shock to relative food prices varies depending on the product, and that the adjustment is generally faster, on average about 10 months, than those usually reported in literature.Food relative prices, Non stationarity, Common factors, Demand and Price Analysis,

Long Term Structural Changes in the EU Countries (1970-2000): Convergence or Divergence in the Agri-Food System?

The main objective of this paper is to analyse the structural changes in European Agri-food systems in the last 30 years in order to verify the presence of a convergence process towards a more homogeneous structure among EU countries. This analysis considers the relative importance of the main components of Agri-food systems (agriculture, food industry and food consumption) and how they change over time. The analysis of convergence utilise the European National Accounting Data (from the SEC2 Data Base of Eurostat) from 1970 to 2000 for twelve EU countries. We use tests of convergence on cross section data by countries, but also stochastic kernel methodologies to verify the dynamic evolution of groups of countries inside the EU. The results show there are important process of convergence among countries for the variables of the Agri-food system that are more linked to the economic development, such as the importance of agriculture and food consumption in GDP. On the other hand there are divergences on the variables more linked to the openness degree and to the competitiveness of the Agri-food system. The presence of polarisation process among groups of countries contribute to the permanence of long run structural changes among Northern and Southern countries in the EU.agro-food System, structural Changes, EU countries, convergence, Industrial Organization, A1, C23, O1, Q10, Q17,

Convergence in the Agricultural Incomes: a Comparison between the US and EU

In this paper we compare the changes in farm incomes in EU regions and US States between1989 and 2002. The aim of this comparative analysis is highlight the patterns of convergence or divergence and how they differ over time. We use two recent analytical instruments: non-stationary panel analysis and dynamic distribution analysis. Both tools overcome the problems involved in using standard cross-section analysis. The results of the non-stationary panel analysis show that the EU regions are converging, and that family farm income is converging faster than net added value. In the US states the analysis shows that substantial differences in farm income persist, and there are no evident signs of convergence. While, the regions are heterogeneous, we modified the analysis to allow for the concept of conditional convergence. The results show that the regions converge towards different levels of productivity but regions that are further from their steady-state level will grow faster.Agricultural Finance,

A Comparative Analysis of the Meat Sector in Hungary and Emilia-Romagna: Performance and Efficiency

In the last years, a lot of important changes occurred inside the European Union after the entering of 12 new member States. The rate of economic growth of the new member States has been higher the other EU members. In Hungary, particularly, the growth level has reached an intermediate position, placing itself at 4% GDP per capita. Comparative analysis are needed to better understand the process of catching-up and to evaluate how the integration between EU regions and countries is going on. The aim of this paper is to compare the economic and efficiency performance of firms in Hungary and Emilia-Romagna, considering a specific sector, meat processing and storage, of the food industry). We will investigate if in the last years the integration process has ultimately led to narrow the gap in the economic performances and efficiency of the firms. The choice of meat processing industry is due to the fact that in Hungary theres a remarkable animal production, whereas in the Emilia-Romagna region the meat industry reflects an organizational structure based on the concentration and specialization in agri-food districts. This paper compares the financial-economic performances and the technical efficiency of firms involved in the industry of meat processing in Hungary and in an Italian region, Emilia-Romagna. We will also discuss and compare the different results obtained throughout governance and structure of meat industry. We will underline the main role of the industrial districts in Emilia-Romagna, and how the Hungarian entrepreneurial system could handle the competition in the global market.Firms financial-economic performances, stochastic production function, agri-food districts, meat processing industry, Hungarian and Emilia-Romagna food industry, Livestock Production/Industries,

The Agrifood Districts in the New Millennium

The Italian Industrial Districts (IDs) are considered to be one of the main reasons for the rapid industrial development and success of Italy since the Second World War. The SME's have also played an important role in this. In this paper we outline the general characteristics of the ID approach and the main structural changes in the new millennium, due to them facing the process of globalization. The distinctive figures of the agrifood districts and their mosaic style of development are than analysed to highlight the similarities and differences between them and the other IDs. First show that they are more relevant and that their geographical distribution is more important than those of other recently analysed Italian ID's. The different zones of origin of agrifood districts and their specialized production is often related to typical or high ‐quality products, with a strong connection to territorial traditions and manufacturing skills. These characteristics make agrifood districts different in some ways from other ID's where the declining “district effect” has been noted due to the general difficulties of Italian manufacturing industries. We will analysis these general structural changes focusing on the districts of the meat industry