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Assessing The Efficiency Of Exchange Rate-Linked Subsidies For Non-Price Export Promotion: The Case Of Cotton

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  • Paudel, Laxmi
  • Adhikari, Murali
  • Houston, Jack E.
  • Kinnucan, Henry W.

Abstract

Notwithstanding substantial federal financial support for the export promotion of agricultural products, ways to improve the efficiency of federal funding have not been discussed in empirical research. In this study, an equilibrium displacement framework was developed to evaluate whether the efficiency 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.

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Bibliographic Info

Paper provided by University of Georgia, Department of Agricultural and Applied Economics in its series Faculty Series with number 16658.

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Date of creation: 2002
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Handle: RePEc:ags:ugeofs:16658

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Keywords: International Relations/Trade;

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  1. 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.
  2. Onunkwo, Izuchukwu M. & Epperson, James E., 1999. "Export Demand For U.S. Pecans: Impacts Of U.S. Export Promotion," 1999 Annual meeting, August 8-11, Nashville, TN 21686, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Halliburton, Karen & Henneberry, Shida Rastegari, 1995. "The Effectiveness Of U.S. Nonprice Promotion Of Almonds In The Pacific Rim," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  4. Solomon, H. & Kinnucan, Henry W., 1993. "Effects Of Non-Price Export Promotion: Some Evidence For Cotton," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 37(01), April.
  5. 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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