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Goodwill and Export Promotion Dynamics

Author

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  • Kinnucan, Henry W.
  • Gong, Li

Abstract

Federal subsidies for nonprice export promotion of farm products have been criticized on the grounds that they merely substitute taxpayer dollars for private promotional expenditures. This “displacement hypothesis” is tested by estimating export demand and advertising-goodwill re-lations using time series data for 1975-2008. The displacement hypothesis receives some support in that three of the nine tests show an inverse relationship between industry and government expenditures. However, the remaining tests show no relationship. These results, coupled with the finding of Kinnucan and Cai (2011) that expenditures for export promotion may be too high when consumer impacts are taken into account, suggest it is time to let the Market Access and Foreign Market Development programs operated by the U.S. Department of Agriculture lapse.

Suggested Citation

  • Kinnucan, Henry W. & Gong, Li, 2014. "Goodwill and Export Promotion Dynamics," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(1), pages 73-88, February.
    • Handle: RePEc:cup:jagaec:v:46:y:2014:i:01:p:73-88_00
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    Cited by:

    1. Williams, Gary W. & Capps, Jr., Oral, . "The apparent conflict of Norwegian pelagic fisheries management and Norwegian seafood council export promotion," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(3).
    2. Williams, Gary W. & Capps Jr., Oral, 2020. "Generic promotion of Norwegian seafood exports," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.

    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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