Material Productivity in Food Manufacturing
1992
Adelaja, Adesoji O.
Material prices have risen in food manufacturing, resulting in material productivity growth. This study estimates material productivity indexes for New Jersey's food‐manufacturing sector. A 21% material productivity growth is indicated for the 1964–84 period. The mechanism of material productivity growth is also investigated. Results suggest that greater material efficiency is encouraged by rising material prices, wage rates, and regulation, and by declining food prices. Short‐run impacts on material productivity are caused by input substitution; beyond‐the‐short‐run impacts are caused by material‐saving technological change. In some food‐manufacturing subsectors, higher material prices may bring lower revenues to material suppliers.
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