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Effect of Food Regulation on the Spanish Food Processing Industry: A Dynamic Productivity Analysis

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  • Magdalena Kapelko
  • Alfons Oude Lansink
  • Spiro E Stefanou

Abstract

This article develops the decomposition of the dynamic Luenberger productivity growth indicator into dynamic technical change, dynamic technical inefficiency change and dynamic scale inefficiency change in the dynamic directional distance function context using Data Envelopment Analysis. These results are used to investigate for the Spanish food processing industry the extent to which dynamic productivity growth and its components are affected by the introduction of the General Food Law in 2002 (Regulation (EC) No 178/2002). The empirical application uses panel data of Spanish meat, dairy, and oils and fats industries over the period 1996-2011. The results suggest that in the oils and fats industry the impact of food regulation on dynamic productivity growth is negative initially and then positive over the long run. In contrast, the opposite pattern is observed for the meat and dairy processing industries. The results further imply that firms in the meat processing and oils and fats industries face similar impacts of food safety regulation on dynamic technical change, dynamic inefficiency change and dynamic scale inefficiency change.

Suggested Citation

  • Magdalena Kapelko & Alfons Oude Lansink & Spiro E Stefanou, 2015. "Effect of Food Regulation on the Spanish Food Processing Industry: A Dynamic Productivity Analysis," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-16, June.
    • Handle: RePEc:plo:pone00:0128217
    DOI: 10.1371/journal.pone.0128217
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    Cited by:

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    6. Majiwa, E. & Mugodo, C., 2018. "Technical efficiency and technology gap ratios among rice farmers in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277209, International Association of Agricultural Economists.
    7. Lukáš Čechura & Zdeňka Žáková Kroupová, 2021. "Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    8. Juan Aparicio & Magdalena Kapelko & Bernhard Mahlberg & Jose L. Sainz-Pardo, 2017. "Measuring input-specific productivity change based on the principle of least action," Journal of Productivity Analysis, Springer, vol. 47(1), pages 17-31, February.
    9. Engida, Tadesse Getacher & Rao, Xudong & Oude Lansink, Alfons G.J.M., 2020. "A dynamic by-production framework for analyzing inefficiency associated with corporate social responsibility," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1170-1179.
    10. Jean Joseph Minviel & Timo Sipiläinen, 2021. "A dynamic stochastic frontier approach with persistent and transient inefficiency and unobserved heterogeneity," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 575-589, July.
    11. Ang, Frederic & Kerstens, Pieter Jan, 2017. "The dynamic Luenberger-Hicks-Moorsteen productivity indicator with an application to dairy farms in South West England," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258636, Agricultural Economics Society.
    12. Zhang, Ming & Du, Panpan & Tu, Xianjin, 2023. "The role of intangible assets in promoting the sustainability of agri-food enterprises: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 928-939.
    13. Kuhn, Lena & Balezentis, Tomas & Hou, Lingling & Wang, Dan, 2020. "Technical and environmental efficiency of livestock farms in China: A slacks-based DEA approach," China Economic Review, Elsevier, vol. 62(C).
    14. Liyun Zhu & Alfons Oude Lansink, 2022. "Dynamic sustainable productivity growth of Dutch dairy farming," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-19, February.
    15. Juan Aparicio & Magdalena Kapelko & Lidia Ortiz, 2021. "Modelling environmental inefficiency under a quota system," Operational Research, Springer, vol. 21(2), pages 1097-1124, June.
    16. Jean Joseph Minviel & Timo Sipiläinen, 2018. "Dynamic stochastic analysis of the farm subsidy-efficiency link: evidence from France," Journal of Productivity Analysis, Springer, vol. 50(1), pages 41-54, October.
    17. Kapelko, Magdalena & Oude Lansink, Alfons & Stefanou, Spiro, 2014. "The Impact of the 2008 Economic Crisis on Dynamic Productivity Growth of the Spanish Food Manufacturing Industry. An Impulse Response Analysis," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182769, European Association of Agricultural Economists.
    18. Ryota Nakatani, 2024. "Food companies' productivity dynamics: Exploring the role of intangible assets," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 185-226, January.

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