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

Magdalena Kapelko; Alfons Oude Lansink; Spiro E Stefanou

doi:10.1371/journal.pone.0128217

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

PLoS One. 2015 Jun 9;10(6):e0128217. doi: 10.1371/journal.pone.0128217. eCollection 2015.

Authors

Magdalena Kapelko¹, Alfons Oude Lansink², Spiro E Stefanou³

Affiliations

¹ Institute of Applied Mathematics, Department of Logistics, Wroclaw University of Economics, Wroclaw, Poland.
² Business Economics Group, Wageningen University, Wageningen, The Netherlands.
³ Food and Resource Economics Department, University of Florida, Gainesville, United States of America; Business Economics Group, Wageningen University, Wageningen, The Netherlands.

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.

Publication types

Research Support, Non-U.S. Gov't

MeSH terms

Efficiency*
Fats
Food-Processing Industry / legislation & jurisprudence*
Legislation, Food*
Oils
Regression Analysis
Spain

Substances

Fats
Oils

Grants and funding

MK and AOL acknowledge the funding from the National Science Centre in Poland (http://www.ncn.gov.pl), decision number DEC-2013/11/D/HS4/00252. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.