IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v15y2024i1p3-d1551458.html
   My bibliography  Save this article

Impact of Regional Location and Territorial Characteristics on Profitability in the Spanish Pig Farming Industry

Author

Listed:
  • Alba Cardil

    (Department of Economics and Business, Faculty of Law, Economics and Tourism, University of Lleida, 25001 Lleida, Spain)

  • José Luis Gallizo

    (Department of Economics and Business, Faculty of Law, Economics and Tourism, University of Lleida, 25001 Lleida, Spain)

  • Manuel Salvador

    (Department of Applied Economics, Faculty of Economics and Business, University of Zaragoza, 50005 Zaragoza, Spain)

Abstract

This work aimed to identify the locational, territorial and financial characteristics that impact the profitability of companies in the Spanish pig sector. The data were extracted from the SABI database, which contains economic and financial information. A sample of 1247 Spanish companies (14,254 observations) was obtained, providing an unbalanced panel dataset for the 2004–2018 period. The statistical analysis considered factors that potentially influence the profitability of companies, considering the potential existence of endogeneity issues among some of the variables analyzed. Companies tended to be located in autonomous communities in inland areas, which had higher depopulation rates and shorter average distances from companies to feed mills and slaughterhouses. There was regional specialization, which was influenced by the ability to invest in infrastructure, proximity to the markets, farm size and efficiency in resource management, which had a positive influence on profitability. These factors led to differences between regions, together with the support of public administration for companies that invest in sparsely populated areas. The results obtained will be of interest to policymakers developing measures aimed at providing better access to inputs through proximity to feed mills and slaughterhouses, as well as to new entrepreneurs in the sector who want to establish their businesses in the most specialized regions.

Suggested Citation

  • Alba Cardil & José Luis Gallizo & Manuel Salvador, 2024. "Impact of Regional Location and Territorial Characteristics on Profitability in the Spanish Pig Farming Industry," Agriculture, MDPI, vol. 15(1), pages 1-24, December.
    • Handle: RePEc:gam:jagris:v:15:y:2024:i:1:p:3-:d:1551458
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/15/1/3/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/15/1/3/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jim Lee, 2009. "Does Size Matter in Firm Performance? Evidence from US Public Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(2), pages 189-203.
    2. Cornelis Gardebroek & Alfons Oude Lansink, 2003. "Estimating Farm Productivity Differentials using Panel Data: The Hausman‐Taylor Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 397-415, November.
    3. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    4. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    5. Juan Cabas Monje & Bouali Guesmi & Amer Ait Sidhoum & José María Gil, 2023. "Measuring technical efficiency of Spanish pig farming: Quantile stochastic frontier approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 688-703, October.
    6. Pia Frederiksen & Vibeke Langer, 2004. "LOCALISATION AND CONCENTRATION OF ORGANIC FARMING IN THE 1990s – THE DANISH CASE," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(5), pages 539-549, December.
    7. Claver, Enrique & Molina, José & Tarí, Juan, 2002. "Firm and Industry Effects on Firm Profitability:: a Spanish Empirical Analysis," European Management Journal, Elsevier, vol. 20(3), pages 321-328, June.
    8. Manuel Arellano & Olympia Bover, 1990. "La econometría de datos de panel," Investigaciones Economicas, Fundación SEPI, vol. 14(1), pages 3-45, January.
    9. GARZON DELVAUX Pedro & RIESGO ALVAREZ Laura & GOMEZ Y PALOMA Sergio, 2020. "Farm size-performance relationship: A review," JRC Research Reports JRC120526, Joint Research Centre.
    10. Maria Tsiouni & Georgios Kountios & Konstantinos Kousenidis & Dimitrios Kousenidis & Ouranios Tzamaloukas & Panagiotis Simitzis, 2023. "Financial Ratio Analysis as an Advisory Tool for Sustainable Pig Farm Management in Greece," Sustainability, MDPI, vol. 15(21), pages 1-11, November.
    11. Natarajan Balasubramanian & Jeongsik Lee, 2008. "Firm age and innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(5), pages 1019-1047, October.
    12. Monje, Juan Cabas & Guesmi, Bouali & Sidhoum, Amer Ait & Gil, José María, 2023. "Measuring technical efficiency of Spanish pig farming: Quantile stochastic frontier approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(04), August.
    13. Croissant, Yves & Millo, Giovanni, 2008. "Panel Data Econometrics in R: The plm Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i02).
    14. Doyle, Chris J & Mitchell, Morag & Topp, Kairsty, 1997. "Effectiveness of Farm Policies on Social and Economic Development in Rural Areas," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 530-546.
    15. Rassier, Dylan G. & Earnhart, Dietrich, 2015. "Effects of environmental regulation on actual and expected profitability," Ecological Economics, Elsevier, vol. 112(C), pages 129-140.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ginés Hernández-Cánovas & Pedro Martínez-Solano, 2007. "Effect of the Number of Banking Relationships on Credit Availability: Evidence from Panel Data of Spanish Small Firms," Small Business Economics, Springer, vol. 28(1), pages 37-53, January.
    2. Zhaohua Deng & Zihao Deng & Guorui Fan & Bin Wang & Weiguo (Patrick) Fan & Shan Liu, 2023. "More is better? Understanding the effects of online interactions on patients health anxiety," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 74(11), pages 1243-1264, November.
    3. Francisco Sogorb- Mira, 2002. "How Sme Uniqueness Affects Capital Structure: Evidence From A 1994-1998 Spanish Data Panel," Working Papers. Serie EC 2002-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Miomir Jovanović & Ljiljana Kašćelan & Aleksandra Despotović & Vladimir Kašćelan, 2015. "The Impact of Agro-Economic Factors on GHG Emissions: Evidence from European Developing and Advanced Economies," Sustainability, MDPI, vol. 7(12), pages 1-21, December.
    5. Caloghirou, Yannis & Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2021. "Industry-university knowledge flows and product innovation: How do knowledge stocks and crisis matter?," Research Policy, Elsevier, vol. 50(3).
    6. Mattia Guidi, 2015. "The Impact of Independence on Regulatory Outcomes: the Case of EU Competition Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 53(6), pages 1195-1213, November.
    7. F. Di Lascio & Simone Giannerini & Antonello Scorcu & Guido Candela, 2011. "Cultural tourism and temporary art exhibitions in Italy: a panel data analysis," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 20(4), pages 519-542, November.
    8. Andrew Bell & Malcolm Fairbrother & Kelvyn Jones, 2019. "Fixed and random effects models: making an informed choice," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 1051-1074, March.
    9. Slobodan Cerovic & Nemanja Stanišic & Tijana Radojevic & Nikica Radovic, 2015. "The Impact of Ownership Structure on Corporate Performance in Transitional Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 441-441, February.
    10. Lichaczewska-Ziemba, Martyna & Gradziuk, Piotr, 2024. "Przemiany i Zróżnicowanie Regionalne Struktury Obszarowej Gospodarstw Rolnych w Polsce," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2024(3).
    11. Roger Bivand & Giovanni Millo & Gianfranco Piras, 2021. "A Review of Software for Spatial Econometrics in R," Mathematics, MDPI, vol. 9(11), pages 1-40, June.
    12. Dejan Ravšelj & Aleksander Aristovnik, 2020. "The Impact of R&D Expenditures on Corporate Performance: Evidence from Slovenian and World R&D Companies," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    13. Heesen, Florian & Madlener, Reinhard, 2016. "Consumer Behavior in Energy-Efficient Homes: The Limited Merits of Energy Performance Ratings as Benchmarks," FCN Working Papers 17/2016, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    14. Chen, Victor Zitian & Li, Jing & Shapiro, Daniel M., 2012. "International reverse spillover effects on parent firms: Evidences from emerging-market MNEs in developed markets," European Management Journal, Elsevier, vol. 30(3), pages 204-218.
    15. Weigert, Andreas & Hopf, Konstantin & Günther, Sebastian A. & Staake, Thorsten, 2022. "Heat pump inspections result in large energy savings when a pre-selection of households is performed: A promising use case of smart meter data," Energy Policy, Elsevier, vol. 169(C).
    16. Feng, Cong & Fay, Scott, 2022. "An empirical investigation of forward-looking retailer performance using parking lot traffic data derived from satellite imagery," Journal of Retailing, Elsevier, vol. 98(4), pages 633-646.
    17. Berggrun, Luis & Lizarzaburu, Edmundo, 2015. "Fund flows and performance in Brazil," Journal of Business Research, Elsevier, vol. 68(2), pages 199-207.
    18. Millo, Giovanni, 2014. "Maximum likelihood estimation of spatially and serially correlated panels with random effects," Computational Statistics & Data Analysis, Elsevier, vol. 71(C), pages 914-933.
    19. Davide Secchi & Stephen J. Cowley, 2018. "Modeling Organizational Cognition: The Case of Impact Factor," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 21(1), pages 1-13.
    20. Gui, Xuechen & Gou, Zhonghua, 2021. "Understanding green building energy performance in the context of commercial estates: A multi-year and cross-region analysis using the Australian commercial building disclosure database," Energy, Elsevier, vol. 222(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:15:y:2024:i:1:p:3-:d:1551458. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.