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Causes and Consequences of the Export Enhancement Program for Wheat

In: The Effects of US Trade Protection and Promotion Policies

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  • Pinelopi Koujianou 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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Suggested Citation

  • Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Chapters, in: The Effects of US Trade Protection and Promotion Policies, pages 273-296, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:0316
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    1. Philip C. Abbott & Philip L. Paarlberg & Jerry A. Sharples, 1987. "Targeted Agricultural Export Subsidies and Social Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 723-732.
    2. Robert G. Chambers & Philip L. Paarlberg, 1991. "Are More Exports Always Better? Comparing Cash and In-Kind Export Subsidies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 142-154.
    3. 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.
    4. Haley, Stephen L., 1989. "Evaluation Of Export Enhancement, Dollar Depreciation, And Loan Rate Reduction For Wheat," Staff Reports 278157, United States Department of Agriculture, Economic Research Service.
    5. Ann Hillberg Seitzinger & Philip L. Paarlberg, 1990. "A Simulation Model of the U.S. Export Enhancement Program for Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 95-103.
    6. Skully, David W, 1992. "Price Discrimination and State Trading: The Case of U.S. Wheat," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(3), pages 313-329.
    7. H. G. Brooks & S. Devadoss & W. H. Meyers, 1990. "The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(2), pages 253-277, July.
    8. Giovanni Anania & Mary Bohman & Colin A. Carter, 1992. "United States Export Subsidies in Wheat: Strategic Trade Policy or Expensive Beggar-Thy-Neighbor Tactic?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 534-545.
    9. Brooks, H. G. & Devadoss, Stephen & Meyers, William H., 1990. "Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market (The)," Staff General Research Papers Archive 305, Iowa State University, Department of Economics.
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    Cited by:

    1. Krishna, Kala & Roy, Suddhasatwa & Thursby, Marie, 1998. "Implementing Market Access," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 529-544, November.
      • Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1996. "Implementing Market Access," NBER Working Papers 5593, National Bureau of Economic Research, Inc.
      • Krishna, K & Roy, S & Thursby, M, 1996. "Implementaing Market Access," Papers 96-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
      • Krishna, K & Thursby, M & Roy, S, 1996. "Implementing Market Access," Papers 96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
    2. Li, Yumin, 2018. "Incentive pass-through in the California Solar Initiative – An analysis based on third-party contracts," Energy Policy, Elsevier, vol. 121(C), pages 534-541.
    3. Knobel, Alexander (Кнобель, Александр) & Kuznetsov, D.E. (Кузнецов, Д.Е.) & Sedalishchev, V.V. (Седалищев, В.В.), 2016. "A Study of Factors Affecting the Price of Russian Exporters on World Markets [Исследование Факторов, Влияющих На Цены Российских Экспортеров На Мировых Рынках]," Working Papers 1855, Russian Presidential Academy of National Economy and Public Administration.
    4. Meredith A. Crowley, 2006. "The agreement on subsidies and countervailing measures: tying one's hands through the WTO," Working Paper Series WP-06-22, Federal Reserve Bank of Chicago.
    5. 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.
    6. George Paily, 2018. "Innovation Strategies, Outcomes and Firm Performance: An Analysis of Firm Behaviour in India's Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 38(4), pages 1769-1786.
    7. Hyun Joung Jin, 2010. "The Effects Of Competition On U.S. Wheat Market Shares In East Asia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(2), pages 37-55, June.

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    JEL classification:

    • F1 - International Economics - - Trade
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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