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Dynamic Complementarity In Export Promotion: The Market Access Program In Fruits And Vegetables

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  • Richards, Timothy J.
  • Patterson, Paul M.

Abstract

Government-supported promotion in foreign markets may justified when market failures exist, such as spillover externalities, where promotion of one commodity positively influences exports of another, or when market uncertainties cause planning horizons to be shorter than the persistent effects of promotion. A dynamic model of U.S. apple, almond, grape, and wine export supply is developed to test for these market failures. Promotion is viewed as an investment in establishing and maintaining a product's image. Evidence supporting the existence of each market failure is found. Exporters and program administrators may fail to account for them in export promotion planning.

Suggested Citation

  • Richards, Timothy J. & Patterson, Paul M., 1998. "Dynamic Complementarity In Export Promotion: The Market Access Program In Fruits And Vegetables," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-19, December.
    • Handle: RePEc:ags:jlaare:31198
    DOI: 10.22004/ag.econ.31198
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    Cited by:

    1. Jakus, Paul M. & Jensen, Kimberly L. & Davis, George C., 2003. "Revenue Impacts of MPP Branded Funds: A Firm-Level Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 32(2), pages 184-197, October.
    2. Tariq Mahmood, 2015. "Mediating Effect of Advertising Expenditure on Labour Productivity - A Case of Manufacturing Industries in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(1), pages 1-15.
    3. Jose‐Maria Garcia‐Alvarez‐Coque & Victor Martinez‐Gomez & Miquel Villanueva, 2010. "Seasonal protection of F&V imports in the EU: impacts of the entry price system," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 205-218, March.
    4. Catherine A. Durham & Esteban Vega-Hidalgo, 2006. "Technical assistance and trade servicing to increase overseas demand for grass seed," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 281-295.
    5. Kinnucan, Henry W. & Xiao, Hui & Yu, Shixue, 2000. "Relative Effectiveness Of Usda'S Nonprice Export Promotion Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-19, December.
    6. J. A. L. Cranfield, 2003. "Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 299-321, November.
    7. 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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