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The Effects Of Trade Promotion On Canadian Agricultural Exports

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  • Gunjal, Kisan R.

Abstract

Canadian agricultural trade promotion expenditures have dramatically increased from C$.4 million in 1969/70 to C$26.5 million in 1981/82. To evaluate the effect of these expenditures on agricultural exports an econometric analysis is presented in this study. The extended distributed lag model for export demand is developed and estimated using an iterative autoregressive least squares with instrumental variable (IALSI) method of estimation. The results reveal that the trade promotion programs (aggregate expenditure levels) have had a statistically significant effect on agricultural exports. The analysis of dynamic multipliers indicates that the effect of trade promotion expenditure on export levels is likely to decline gradually and last for about a five-year period. Also, the real export demand for aggregate agricultural products is found close to unitary elastic with respect to the real export price variable.

Suggested Citation

  • Gunjal, Kisan R., 1985. "The Effects Of Trade Promotion On Canadian Agricultural Exports," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(2), pages 1-10, October.
    • Handle: RePEc:ags:nejare:28947
    DOI: 10.22004/ag.econ.28947
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    References listed on IDEAS

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    1. Stanley R. Thompson & Doyle A. Eiler, 1975. "Producer Returns from Increased Milk Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 505-508.
    2. Eithan Hochman & Uri Regev & Ronald W. Ward, 1974. "Optimal Advertising Signals in the Florida Citrus Industry: A Research Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(4), pages 697-705.
    3. Donald MacLaren, 1977. "Canadian Wheat Exports In The International Market: An Exploratory Econometric And Policy Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 25(1), pages 31-54, February.
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    1. Kinnucan, Henry W. & Forker, Olan D., 1988. "Allocation Of Generic Advertising Funds Among Products: A Sales Maximization Approach," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(01), pages 1-8, April.

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