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Effects Of Non-Price Export Promotion: Some Evidence For Cotton

Author

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  • Solomon, H.
  • Kinnucan, Henry W.

Abstract

An Annington-type trade model is estimated to determine the effects of government-subsidized export promotion on the demand for U.S. cotton in the Pacific Rim. Results show a significant relationship between promotion expenditures and U.S. market share in four of the six countries examined. One of the two countries exhibiting a non-significant effect had very low promotion expenditures, suggesting that a minimal level of funding may be necessary to achieve a market response. The hypothesis that export promotion has a carryover period lasting beyond one year in general is supported by the data. The question of the economic impacts of export promotion on domestic producers and taxpayers must await additional research.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:ajaeau:22380
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    Cited by:

    1. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    2. Henry W. Kinnucan & Maria Thomas, 1997. "Optimal Media Allocation Decisions For Generic Advertisers," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 425-441.
    3. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1996. "Profitability Of Incremental Expenditure On Fibre Promotion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(03), December.
    4. Paudel, Laxmi & Adhikari, Murali & Houston, Jack E. & Kinnucan, Henry W., 2002. "Assessing The Efficiency Of Exchange Rate-Linked Subsidies For Non-Price Export Promotion: The Case Of Cotton," Faculty Series 16658, University of Georgia, Department of Agricultural and Applied Economics.
    5. Amy Quark, 2015. "Agricultural commodity branding in the rise and decline of the US food regime: from product to place-based branding in the global cotton trade, 1955–2012," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(4), pages 777-793, December.
    6. Timothy J. Richards & Paul M. Patterson, 2002. "Minimum effective scale in export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 523-541.
    7. Adhikari, Murali & Paudel, Laxmi & Houston, Jack E. & Paudel, Biswo Nath, 2003. "Measuring the Impacts of US Export Promotion Program for Wheat in Selected Importing Regions," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35161, Southern Agricultural Economics Association.
    8. Pimbucha Rusmevichientong & Harry M. Kaiser, 2009. "Measuring the effectiveness of U.S. rice export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 215-230.

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    Keywords

    Marketing;

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