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Social And Scale Efficiency Gains Due To Vertical Integration In The U.S. Hog Sector

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  • Helmers, Glenn A.
  • Shaik, Saleem
  • Atwood, Joseph A.

Abstract

Using a non-parametric linear programming approach, our contribution is (1) to examine if efficiency gains in hog production are realized due to vertical integration and (2) to demonstrate the efficiency gains that are realized are a product of economies of scope and scale. The model uses U.S. hog sector data for the period, 1982-1997. Results indicate efficiency gains are realized due to vertical integration and can be explained by scope and scale efficiency gains. The t-test at the 5% level of significance indicates the mean overall efficiency gains; scope efficiency gains and scale efficiency gains are significantly different from one.

Suggested Citation

  • Helmers, Glenn A. & Shaik, Saleem & Atwood, Joseph A., 2003. "Social And Scale Efficiency Gains Due To Vertical Integration In The U.S. Hog Sector," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35143, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeatm:35143
    DOI: 10.22004/ag.econ.35143
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    References listed on IDEAS

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