Firm Survival and Quality Labels in the Food Industry

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.


Issue Date:
2010
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/61377
Total Pages:
24
Series Statement:
Selected Paper
10740




 Record created 2017-04-01, last modified 2017-08-25

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