Industry Competitiveness Indicators

Arbeitspapier

It can be argued that the competitiveness of an industry consists of two main parts: The production conditions and the utilization of these. The production conditions are largely determined by factors exogenous to the firms comprising the industry, including the economic environment, regulatory framework, etc. The utilization of the production conditions corresponds to the classic economic notion of structural efficiency. We here argue that it is crucial for policy analysis to be able to quantify each of these two aspects separately, since the production conditions are partly in the hands of the policy makers, whereas the utilization is mainly the responsibility of firm management. In this paper we define two new bilateral indicators; the Bilateral Industry Utilization (BIU) indicator, and the Bilateral Production Conditions (BPC) indicator. These are applied to a large data set of dairy farms across 19 European countries provided by the Farm Accountancy Data Network (FADN). With focus on the competitiveness of Danish dairy farms we show that dairy farms in most other countries have significantly better production conditions than those in Denmark while Sweden is the only country with significantly better utilization. Finally, we asses potential causes behind the differences and discuss possible remedies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFRO Working Paper ; No. 2019/01

Classification and Topics

• Classification: Wirtschaft ; Optimization Techniques; Programming Models; Dynamic Analysis ; Microeconomic Policy: Formulation, Implementation, and Evaluation ; Macroeconomics: Production ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
• Subject: Competitiveness indicators ; Production conditions ; Structural efficiency ; Bilateral indicators ; Dairy farms ; Efficiency ; Frontier analysis ; Jackknifing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Asmild, Mette ; Baležentis, Tomas ; Hougaard, Jens Leth
• Event: Veröffentlichung
• (who): University of Copenhagen, Department of Food and Resource Economics (IFRO)
• (where): Copenhagen
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/204430
• Last update: 10.03.2025, 11:43 AM CET