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Dynamic Complementarity In Export Promotion: The Market Access Program In Fruits And Vegetables

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Author Info

  • Richards, Timothy J.
  • Patterson, Paul M.

Abstract

Government-supported promotion in foreign markets may justified when market failures exist, such as spillover externalities, where promotion of one commodity positively influences exports of another, or when market uncertainties cause planning horizons to be shorter than the persistent effects of promotion. A dynamic model of U.S. apple, almond, grape, and wine export supply is developed to test for these market failures. Promotion is viewed as an investment in establishing and maintaining a productÂ’'s image. Evidence supporting the existence of each market failure is found. Exporters and program administrators may fail to account for them in export promotion planning.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 23 (1998)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:31198

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Web page: http://waeaonline.org/
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Keywords: International Relations/Trade;

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References

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  1. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
  2. Stefanou, Spiro E, et al, 1992. "Dynamic Structure of Production under a Quota: The Case of Milk Production in the Federal Republic of Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 283-99.
  3. Lawrence, Denis, 1990. "An adjustment-costs model of export supply and import demand," Journal of Econometrics, Elsevier, vol. 46(3), pages 381-398, December.
  4. Comeau, Allison & Mittelhammer, Ronald C. & Wahl, Thomas I., 1997. "Assessing The Effectiveness Of Mpp And Tea Advertising And Promotion Efforts In The Japanese Market For Meats," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(2), July.
  5. Howard, Wayne H. & Shumway, C. Richard, 1989. "Nonrobustness Of Dynamic Dual Models Of The U.S. Dairy Industry," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(1), April.
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  7. Robert C. Feenstra & Clinton R. Shiells, 1996. "Bias in U.S. Import Prices and Demand," NBER Chapters, in: The Economics of New Goods, pages 249-276 National Bureau of Economic Research, Inc.
  8. Catherine J. Morrison, 1997. "Structural Change, Capital Investment and Productivity in the Food Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 110-125.
  9. George C. Davis, 1997. "Product Aggregation Bias as a Specification Error in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 100-109.
  10. Alston, Julian M. & Chalfant, James A. & Christian, Jason E. & Meng, Erika C.H. & Piggott, Nicholas E., 1997. "The California Table Grape Commission's Promotion Program: An Evaluation," Monographs, University of California, Davis, Giannini Foundation, number 11932.
  11. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
  12. Weersink, Alfons & Howard, Wayne H., 1990. "Regional Adjustment Response In The U.S. Dairy Sector To Changes In Milk Support Price," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(01), July.
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Cited by:
  1. 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(02), December.
  2. Pimbucha Rusmevichientong & Harry M. Kaiser, 2009. "Measuring the effectiveness of U.S. rice export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 215-230.
  3. Jensen, Kimberly L. & Jakus, Paul M. & Davis, George C., 2003. "Revenue Impacts of MPP Branded Funds: A Firm-Level Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(2), October.
  4. 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.
  5. Cranfield, John A.L., 2002. "Optimal Collective Investment In Generic Advertising, Export Market Promotion And Cost-Of-Production Reducing Research," Working Papers 34135, University of Guelph, Department of Food, Agricultural and Resource Economics.

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