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Causes and Consequences of the Export Enhancement Program for Wheat

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  • Pinelopi K. 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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  • Pinelopi K. Goldberg & Michael M. Knetter, 1995. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Working Papers 5359, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5359
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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.
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    9. 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.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Krishna, Kala & Roy, Suddhasatwa & Thursby, Marie, 1998. "Implementing Market Access," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 529-544, November.
      • 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).
      • 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).
      • Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1996. "Implementing Market Access," NBER Working Papers 5593, National Bureau of Economic Research, Inc.
    5. 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.
    6. 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.
    7. 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.

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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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