Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/175509 
Year of Publication: 
2016
Series/Report no.: 
School of Economics Discussion Papers No. 1612
Publisher: 
University of Kent, School of Economics, Canterbury
Abstract: 
This article analyzes persistence and the drivers of profitability in US and EU food processing using GMM estimations. Due to different firm size structures first comparable samples of US and EU food processors are derived using Propensity Score Matching. The GMM results indicate that profit persistence in food processing is lower than in other manufacturing sectors. Firm-specific drivers of profitability are size, growth and financial risk. Regarding industry characteristics the growth rate significantly influences profitability. The findings provide insights for the management of food processing firms as well as for policy decisions aiming to counter power imbalances in the food sector.
Subjects: 
Firm profit
persistence
food industry
GMM panel estimation
propensity score matching
JEL: 
L12
L66
M21
Document Type: 
Working Paper

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