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Competitive Pressure and Productivity Growth: The Case of the Florida Vegetable Industry

Abstract The relationship between the degree of competitive market pressure and the rate of productivity growth is empirically investigated with a case study of the Florida fresh winter vegetable industry. The results indicate that crops which faced considerable competitive pressure exhibited significant productivity growth while the crops that faced minimal competitive pressure generally exhibited little growth in productivity. Thus, the hypothesis that competitive pressure is positively related to productivity growth is supported.