Measuring the effectiveness of non-price export promotion using a supply-side approach
AbstractIn this paper we assess the effectiveness of the Market Promotion Program (MPP) in increasing U.S. exports and benefitting U.S. agricultural producers and food processors. Export shipments are linked to producer welfare using Kohli's (1978) profit maximization (GNP function) approach to modeling international trade. Using estimated profit functions in conjunction with a synthetic export demand function for processed agricultural products, we compute changes in farm and food processing sector profits that result from alternative own-price and advertising elasticities of export demand with and without the MPP subsidy. This approach allows us to investigate aggregate welfare effects of nonprice promotion without requiring the difficult task of estimating the export demand effects of market promotion activities for numerous commodities and importing countries.
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Bibliographic InfoArticle provided by Springer in its journal Empirical Economics.
Volume (Year): 26 (2001)
Issue (Month): 2 ()
Note: received: April 1999/Final version received: June 2000
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- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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- Salvator Nkunzimana & H. Alan Love & C. Richard Shumway, 2003. "Mexican agricultural trade under the GATT," Applied Economics, Taylor and Francis Journals, vol. 35(4), pages 449-459.
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