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Are More Exports Always Better? Comparing Cash and In-Kind Export Subsidies

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  • Robert G. Chambers
  • Philip L. Paarlberg

Abstract

Cash and in-kind export subsidies are compared. It is found that the ability to enhance real farm income via export subsidies is sensitive both to the form (cash vs. in-kind) and the point of policy intervention. In-kind subsidies of the type granted under the Export Enhancement Program can in fact reduce real-farm income. Export subsidies are examined under three separate scenarios: no target price or nonrecourse loan programs, a target price but no nonrecourse loan program; and a nonrecourse loan program but no target price program. The presence of a nonrecourse loan program dampens the impacts of both cash and in-kind export subsidies.

Suggested Citation

  • Robert G. Chambers & Philip L. Paarlberg, 1991. "Are More Exports Always Better? Comparing Cash and In-Kind Export Subsidies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 142-154.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:1:p:142-154.
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    Cited by:

    1. Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Chapters, in: The Effects of US Trade Protection and Promotion Policies, pages 273-296, National Bureau of Economic Research, Inc.
    2. Elbehri, Aziz & Leetmaa, Susan E., 2001. "How Significant Are Export Subsidies To Agricultural Trade? Trade And Welfare Implications Of Global Reforms," 2001 Annual meeting, August 5-8, Chicago, IL 20518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Roe, Terry L., 1992. "Political Economy of Structural Adjustment: A General Equilibirum- Interest Group Perspective," Bulletins 7467, University of Minnesota, Economic Development Center.
    4. Peterson, Jeffrey M. & Minten, Bart & de Gorter, Harry, 1999. "Economic Costs Of The U.S. Wheat Export Enhancement Program: Manna From Heaven Or From Taxpayers?," Working Papers 14578, International Agricultural Trade Research Consortium.

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