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Effects Of Non‐Price Export Promotion: Some Evidence For Cotton

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  • H. Solomon
  • Henry W. Kinnucan

Abstract

An Annington-type trade model is estimated to determine the effects of government-subsidized export promotion on the demand for U.S. cotton in the Pacific Rim. Results show a significant relationship between promotion expenditures and U.S. market share in four of the six countries examined. One of the two countries exhibiting a non-significant effect had very low promotion expenditures, suggesting that a minimal level of funding may be necessary to achieve a market response. The hypothesis that export promotion has a carryover period lasting beyond one year in general is supported by the data. The question of the economic impacts of export promotion on domestic producers and taxpayers must await additional research.
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Suggested Citation

  • H. Solomon & Henry W. Kinnucan, 1993. "Effects Of Non‐Price Export Promotion: Some Evidence For Cotton," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 37(1), pages 1-15, April.
    • Handle: RePEc:bla:ajarec:v:37:y:1993:i:1:p:1-15
    DOI: j.1467-8489.1993.tb00525.x
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    References listed on IDEAS

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    1. Ackerman, Karen Z., 1990. "Agricultural Export Programs: Background for 1990 Farm Legislation," Staff Reports 278857, United States Department of Agriculture, Economic Research Service.
    2. Robert G. Chambers & Richard E. Just, 1981. "Effects of Exchange Rate Changes on U.S. Agriculture: A Dynamic Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 32-46.
    3. Hui-Shung Chang & Richard Green, 1989. "The Effects of Advertising on Food Demand Elasticities," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 37(3), pages 481-494, November.
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    Cited by:

    1. Timothy J. Richards & Paul M. Patterson, 2002. "Minimum effective scale in export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 523-541.
    2. Henry W. Kinnucan & Maria Thomas, 1997. "Optimal Media Allocation Decisions For Generic Advertisers," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 425-441, January.
    3. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1996. "Profitability Of Incremental Expenditure On Fibre Promotion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-24, December.
    4. Kinnucan, Henry W. & Xiao, Hui & Yu, Shixue, 2000. "Relative Effectiveness Of Usda'S Nonprice Export Promotion Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-19, December.
    5. Richards, Timothy J. & Patterson, Paul M., 1998. "Dynamic Complementarity In Export Promotion: The Market Access Program In Fruits And Vegetables," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-19, December.
    6. Paudel, Laxmi & Adhikari, Murali & Houston, Jack E. & Kinnucan, Henry W., 2002. "Assessing The Efficiency Of Exchange Rate-Linked Subsidies For Non-Price Export Promotion: The Case Of Cotton," Faculty Series 16658, University of Georgia, Department of Agricultural and Applied Economics.
    7. Adhikari, Murali & Paudel, Laxmi & Houston, Jack E. & Paudel, Biswo Nath, 2003. "Measuring the Impacts of US Export Promotion Program for Wheat in Selected Importing Regions," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35161, Southern Agricultural Economics Association.
    8. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    9. Amy Quark, 2015. "Agricultural commodity branding in the rise and decline of the US food regime: from product to place-based branding in the global cotton trade, 1955–2012," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(4), pages 777-793, December.
    10. Pimbucha Rusmevichientong & Harry M. Kaiser, 2009. "Measuring the effectiveness of U.S. rice export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 215-230.

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