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Journal of Productivity Analysis

, Volume 29, Issue 1, pp 1–13 | Cite as

Public infrastructure, input efficiency and productivity growth in the Canadian food processing industry

  • Jeffrey I. Bernstein
  • Theofanis P. Mamuneas
Article

Abstract

Canadian food processing is an important manufacturing industry, accounting for 13 percent of shipments. By its nature food processing depends on infrastructure capital. Our objective is to estimate infrastructure’s effects on input requirements, cost and productivity. The increase in capital and decrease in materials were respectively 2.5 and 3 times greater than the −0.07 infrastructure elasticity of labor. Infrastructure investment was cost-reducing by inducing reductions in employment and intermediate inputs. A 1 percent increase caused cost to decline by 0.16 percent. Infrastructure capital was a major contributor to productivity, annually contributing 0.5 percentage points. This was nearly double TFP growth.

Keywords

Food processing Infrastructure capital Productivity growth 

JEL Classifications

D24 L66 

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Notes

Acknowledgments

The authors would like to thank Sean Cahill for research assistance in developing the dataset used in this paper. In addition, we would like to thank two anonymous referees who provided very helpful comments and suggestions.

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Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  • Jeffrey I. Bernstein
    • 1
    • 2
  • Theofanis P. Mamuneas
    • 3
  1. 1.Department of EconomicsFlorida International UniversityMiamiUSA
  2. 2.NBERCambridgeUSA
  3. 3.Department of EconomicsUniversity of CyprusNicosiaCyprus

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