Agglomeration Effects in Ontario's Dairy Farming

    loading  Checking for direct PDF access through Ovid


This paper examines the agglomeration hypothesis, which states that a firm's productive efficiency is increased by closer proximity to other firms. Using a stochastic input distant function with heteroskedastic inefficiency effects, we find that the density of Ontario dairy farms has a significant positive economic effect on production efficiency. The finding has implications for understanding agricultural firm location and farmer-led efforts to preserve agricultural farming activities in specific locations.

Related Topics

    loading  Loading Related Articles