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Relative Effectiveness Of Usda'S Nonprice Export Promotion Instruments

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  • Kinnucan, Henry W.
  • Xiao, Hui
  • Yu, Shixue

Abstract

The USDA's Foreign Agricultural Service funds three types of activities to promote agricultural exports: consumer promotion, technical assistance, and trade servicing. These "instruments" are analyzed using an adaptation of Muth's model. Results indicate that consumer promotion always increases the derived demand for the U.S. agricultural commodity, but that under certain conditions technical assistance and trade servicing can have a perverse effect. Applying the model to cotton promotion in Japan, the results suggest that, owing to cotton's modest share of retail value, the current emphasis on consumer promotion may be misplaced. Specifically, it appears that producer returns can be enhanced by emphasizing technical assistance projects that save on the marketing input.

Suggested Citation

  • Kinnucan, Henry W. & Xiao, Hui & Yu, Shixue, 2000. "Relative Effectiveness Of Usda'S Nonprice Export Promotion Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-19, December.
    • Handle: RePEc:ags:jlaare:30894
    DOI: 10.22004/ag.econ.30894
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    References listed on IDEAS

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    Cited by:

    1. Beach, Robert H. & Murray, Brian C. & Piggott, Nicholas E. & Wohlgenant, Michael K., 2002. "Interaction Effects Of Promotion, Research, And Price Support Programs For U.S. Cotton," 2002 Annual meeting, July 28-31, Long Beach, CA 19803, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. J. A. L. Cranfield, 2003. "Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 299-321, November.
    3. Amy Quark, 2015. "Agricultural commodity branding in the rise and decline of the US food regime: from product to place-based branding in the global cotton trade, 1955–2012," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(4), pages 777-793, December.
    4. Timothy J. Richards & Paul M. Patterson, 2002. "Minimum effective scale in export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 523-541.
    5. Lin, Ying & Zhang, Daowei, 2017. "Incidence of Russian log export tax: A vertical log-lumber model," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 69-77.
    6. Catherine A. Durham & Esteban Vega-Hidalgo, 2006. "Technical assistance and trade servicing to increase overseas demand for grass seed," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 281-295.

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