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The Export Enhancement Program'S Influence On Firm-Level Competition In International Markets

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  • Patterson, Paul M.
  • Abbott, Philip C.
  • Stiegert, Kyle W.

Abstract

The U.S. government awarded export subsidies to agribusiness firms through the Export Enhancement Program (EEP). This study analyzes (a) whether the subsidies promoted new firm market entry and (b) whether firm characteristics influenced program participation. Trade in three commodities, poultry, wheat, and wheat flour, was analyzed using firm level data. It was found that new firm market entry was not significantly higher among subsidy recipients and that past program participation strongly influenced current program participation. Although the EEP is believed to have been administered fairly, perceived or real barriers prevented some firms from using it.

Suggested Citation

  • Patterson, Paul M. & Abbott, Philip C. & Stiegert, Kyle W., 1996. "The Export Enhancement Program'S Influence On Firm-Level Competition In International Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-12, July.
    • Handle: RePEc:ags:jlaare:30997
    DOI: 10.22004/ag.econ.30997
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    References listed on IDEAS

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    1. Bailey, Kenneth W., 1989. "Why Did U.S. Wheat Exports Expand?," Agricultural Information Bulletins 309491, United States Department of Agriculture, Economic Research Service.
    2. 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.
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    5. Paarlberg, Robert L., 1990. "The Mysterious Popularity of EEP," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 5(2), pages 1-4.
    6. Caves, Richard E. & Pugel, Thomas A., 1982. "New Evidence on Competition in the Grain Trade," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 18(3), pages 1-14.
    7. Auquier, Antoine A, 1980. "Sizes of Firms, Exporting Behavior, and the Structure of French Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 29(2), pages 203-218, December.
    8. Stephen L. Haley, 1990. "Measuring the effectiveness of the export enhancement program for poultry," Agribusiness, John Wiley & Sons, Ltd., vol. 6(2), pages 97-108.
    9. Haley, Stephen L., 1990. "Measuring the Effectiveness of the Export Enhancement Program for Poultry," Staff Reports 278276, United States Department of Agriculture, Economic Research Service.
    10. Feinberg, Robert M., 1992. "Hysteresis and export targeting," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 679-684, December.
    11. Caves, Richard E., 1977. "Organization, Scale, and Performance of the Grain Trade," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 16(3), pages 1-18.
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    Cited by:

    1. Angela M. Krueger & Victoria Salin & Allan W. Gray, 2001. "Geographic diversification strategy and the implications of global market integration in table grapes," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 81-99.

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