Factors influencing growth of dairy product manufacturing in the United States

The paper analyzes factors influencing the growth of the number of dairy product manufacturing establishments in the United States. We hypothesize that the growth pattern is affected by the size of the establishments. The empirical findings presented in the paper suggest that the growth of the number of small-size dairy product manufacturing establishments is strongly affected by the proximity of both input and output markets as well as by the presence of competition from medium-large-size establishments. In contrast, the growth of the number of medium-large-size establishments is affected by the proximity of the input market and the absence of competition from small-size establishments. The proximity of the output market does not seem to have a strong effect on the growth of the number of medium-large-size establishments.