Year of Publication

2016

Degree Name

Master of Science (MS)

Document Type

Master's Thesis

College

Agriculture, Food and Environment

Department

Agricultural Economics

First Advisor

Dr. Yuqing Zheng

Abstract

Food safety problems have gained national attention, and food recall is one of the most important indications of this concern. Third-party certifications have become a popular way to improve the safety and quality of products for consumers. Publications related to third-party certification usually focus on the motives and benefits of a particular certification. However, to date, no existing research investigates the effects of food recalls on certification adoption.

This study uses Probit models with a binary endogenous explanatory variable to examine the relationship between food recalls and third-party certification, based on recalls occurring between January 1, 2015 and February 18, 2016. Marginal effects are used to interpret the impact of recalls and companies’ annual net sales on third-party certification adoption. Results reveal that past recalls significantly affect a firm’s likelihood of certification adoption.

Digital Object Identifier (DOI)

http://dx.doi.org/10.13023/ETD.2016.277

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