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Causes and Consequences of the Export Enhancement Program for Wheat

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  • Pinelopi K. Goldberg
  • Michael M. Knetter

Abstract

This paper uses regression analysis to study the causes and impacts of the Export Enhancement Program for wheat. We find that the overwhelming causes of the EEP, faltering export markets and swelling government stocks are primarily attributable to the overvaluation of the dollar in the 1980s, not the increase in EC subsidies to wheat farmers in 1985. We also find that what had been a fairly robust relationship between export shares, exchange rates, and loan rates broke down after 1985, probably due to a variety of changes in farm policy. In any case, export shares did not rebound in spite of the weaker dollar and the implementation of the EEP in the post-1985 period.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5359.

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Date of creation: Nov 1995
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Publication status: published as The Effects of US Trade Protection and Promotion Policies, R. Feenstra, ed.pp. 273-296, (Chicago: University of Chicago Press, 1997). NBER Conference Volume
Handle: RePEc:nbr:nberwo:5359

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  1. Anania, Giovanni & Bohman, Mary & Carter, Colin A., 1991. "U.S. Export Subsidies in Wheat: Strategic Trade Policy or An Expensive Beggar-My-Neighbor tactic?," Working Papers 51148, International Agricultural Trade Research Consortium.
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Cited by:
  1. Krishna, K & Thursby, M & Roy, S, 1996. "Implementing Market Access," Papers, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER) 96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
  2. Meredith Crowley, 2006. "The agreement on subsidies and countervailing measures: tying one's hands through the WTO," Working Paper Series, Federal Reserve Bank of Chicago WP-06-22, Federal Reserve Bank of Chicago.
  3. Stephen Schmidt, 2001. "Incentive Effects of Expanding Federal Mass Transit Formula Grants," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 239-261.

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