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Analysis Of Exchange Rate Linked Subsidies For Non-Price Export Promotion: The Case Of Cotton

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  • Paudel, Laxmi
  • Adhikari, Murali
  • Houston, Jack E.
  • Kinnucan, Henry W.

Abstract

An equilibrium displacement framework was developed to evaluate the effect of exchange rate linked subsidies for non-price export promotion for US cotton. Study results show that an increase in promotion expenditure increased the dollar value and producer welfare of cotton growers. The gross gain to the domestic cotton producers from the exchange-rate linked subsidy scheme was positive. These evidences support exchange rate linked subsidies for US cotton export promotion.

Suggested Citation

  • Paudel, Laxmi & Adhikari, Murali & Houston, Jack E. & Kinnucan, Henry W., 2002. "Analysis Of Exchange Rate Linked Subsidies For Non-Price Export Promotion: The Case Of Cotton," 2002 Annual meeting, July 28-31, Long Beach, CA 19826, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19826
    DOI: 10.22004/ag.econ.19826
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    References listed on IDEAS

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    1. Kinnucan, Henry W. & Chang, Hui-Shung (Christie) & Venkateswaran, Meenakshi, 1993. "Generic Advertising Wearout," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(03), pages 1-15, December.
    2. Duffy, Patricia A. & Wohlgenant, Michael K., 1991. "Effects of an Export Subsidy on the U.S. Cotton Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(2), pages 1-8, December.
    3. Henry W. Kinnucan & Patricia A. Duffy & Karen Z. Ackerman, 1995. "Effects of Price Versus Non-Price Export Promotion: The Case of Cotton," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(1), pages 91-100.
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