The effect of quality-environmental investment on horticultural firms' competitiveness

The aim of this paper is to analyze the impact that environment-friendly and management-quality improvements have on the firm's competitiveness (profitability and market share) within the fresh fruit and vegetable sector. Andalusian farming/marketing entities (producer organizations) serve as a reference for our analysis. For these entities, there are subsidy programs aimed at developing quality and environmental practices. Such programs are a top priority for the CAP's Common Market Organizations. An analysis of a simultaneous equations model is suggested, considering the distinguishing effect of quality-environmental investment and the possible endogeneity problems among the variables. The results show a positive correlation between the application of the aforementioned activities and the competitiveness of the horticultural firms.