Industry, firm, year, and country effects on profitability in EU food processing

This paper decomposes the variance in food industry return-on-assets into year, country, industry, and firm effects. Besides these main effects, we include several interactions and discuss their theoretical foundations. After determining effect significance in a nested ANOVA with a rotating pattern of effect introduction, we estimate effect magnitude using components of variance on a large sample of corporations. The results show that firm characteristics are far more important than industry structure in determining food industry profitability. Main effects and interactions of year and country membership are weak, indicating that performance differentials can poorly be explained by macroeconomic and trade theory.

Heckelei, Thomas
Issue Date:
Jun 05 2013
Publication Type:
Working or Discussion Paper
Record Identifier:
PURL Identifier:
Total Pages:
Series Statement:
Agricultural and Resource Economics, Discussion Paper

 Record created 2017-04-01, last modified 2018-01-22

Download fulltext

Rate this document:

Rate this document:
(Not yet reviewed)