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Firm Survival and Quality Labels in the Food Industry

Author

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  • Bontemps, Christophe
  • Bouamra-Mechemache, Zohra
  • Simioni, Michel

Abstract

Both industry and firm characteristics influence the survival of a firm in an industry over time. Aging, size, structure are factors often discussed in the literature, but public intervention effects -through public quality labeling for example - may also have an effect that is examined here. We use data on French firms producing cheese under public quality label or not over the period 1990-2006. We perform a nonparametric estimation using Kaplan-Meier estimators as well as proportional hazard rate models. Our results confirm existing findings on firm survival determinants. We also shed light on the effect of public intervention into that industry. More precisely, our focus on public quality labeling in the French cheese industry shows that quality label reduces the risk of exiting for firms and more particulary for small firms. In other words, public intervention in this industry is well designed to increase the competitiveness of small firms enabling the coexistence on the market of both small and large firms.

Suggested Citation

  • Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2010. "Firm Survival and Quality Labels in the Food Industry," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61377, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61377
    DOI: 10.22004/ag.econ.61377
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    References listed on IDEAS

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    1. Eric E. Giraud-Heraud & J. Mathurin & Louis Georges Soler, 2003. "Which justification of supply regulation in the appellations of origin ? [Quelle légitimité à des mécanismes de régulation de l'offre dans les appellations d'origine protégée ?]," Post-Print hal-02670268, HAL.
    2. Zohra Bouamra‐Mechemache & Jad Chaaban, 2010. "Determinants of Adoption of Protected Designation of Origin Label: Evidence from the French Brie Cheese Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 225-239, June.
    3. Sophia Rabe-Hesketh & Anders Skrondal, 2012. "Multilevel and Longitudinal Modeling Using Stata, 3rd Edition," Stata Press books, StataCorp LP, edition 3, number mimus2.
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