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Assessing the efficiency of exchange rate-linked subsidies (ERLS) for non-price export promotion: The case of cotton

Author

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  • Laxmi Paudel

    (Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall 205, Athens, GA 30602)

  • Murali Adhikari

    (Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall 205, Athens, GA 30602)

  • Jack E. Houston

    (Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall, Athens, GA 30602)

  • Henry W. Kinnucan

    (Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn, AL 36849)

Abstract

Notwithstanding substantial federal financial support for the export promotion of agricultural products, ways to enhance the effectiveness of federal funding have not been discussed in empirical research. In this study, an equilibrium displacement framework was developed to evaluate whether the efficacy of export promotion expenditures could be increased by linking them with changes in the exchange rate. In our analysis, the gross gain to domestic cotton producers from the exchange rate linked subsidy scheme was positive. Findings support exchange rate linked subsidies for export promotion of agricultural products. [EconLit citations: Q110, Q130.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 481-493, 2004.

Suggested Citation

  • Laxmi Paudel & Murali Adhikari & Jack E. Houston & Henry W. Kinnucan, 2004. "Assessing the efficiency of exchange rate-linked subsidies (ERLS) for non-price export promotion: The case of cotton," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 481-493.
    • Handle: RePEc:wly:agribz:v:20:y:2004:i:4:p:481-493
    DOI: 10.1002/agr.20025
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    References listed on IDEAS

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    1. Fuller, Stephen & Bello, Haruna & Capps, Oral, 1992. "Import Demands For U.S. Fresh Grapefruit: Effect Of U.S. Promotion Programs And Trade Policies Of Importing Nations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(1), pages 251-260, July.
    2. Onunkwo, Izuchukwu M. & Epperson, James E., 2000. "Export Demand For U.S. Walnuts: Impacts Of U.S. Export Promotion Programs," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(3), pages 1-7, November.
    3. 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), pages 1-9, July.
    4. I.M. Onunkwo & J.E. Epperson, 2000. "Export demand for U.S. pecans: Impacts of U.S. export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 253-265.
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