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A note on measuring returns to nonprice export promotion

Author

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  • Henry W. Kinnucan

    (Department of Agricultural Economics and Rural Sociology,, Auburn University, 213 Comer Hall, Auburn, AL 36949-4201., E-mail: hkinnuca@acesag.auburn.edu)

  • Øystein Myrland

    (Department of Economics and Management, University of Tromsø,, 9037 Tromsø, Norway. E-mail: oysteinm@nfh.uit.no)

Abstract

For nonprice promotion to benefit producers, it must raise the farm price. This principle seems not to be widely appreciated. In particular, a formula commonly used to measure returns to export promotion does not reflect price enhancement and therefore is problematic. An additional problem is that marginal returns, the usual measure provided in the literature, are often confused with average returns. This article discusses these issues in some detail using as an example salmon promotion in France and Germany. Study results suggest that promotion elasticity-based measures of returns can be misleading, especially in instances where producers or consumers are sensitive to price. [JEL Classifications: L660, Q130, Q170]. © 2001 John Wiley & Sons, Inc.

Suggested Citation

  • Henry W. Kinnucan & Øystein Myrland, 2001. "A note on measuring returns to nonprice export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 423-433.
    • Handle: RePEc:wly:agribz:v:17:y:2001:i:3:p:423-433
    DOI: 10.1002/agr.1026
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    References listed on IDEAS

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    1. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    2. Gary W. Williams, 1985. "Returns to US soybean export market development," Agribusiness, John Wiley & Sons, Ltd., vol. 1(3), pages 243-263.
    3. Marc Nerlove & Frederick V. Waugh, 1961. "Advertising without Supply Control: Some Implications of a Study of the Advertising of Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 813-837.
    4. Henry W. Kinnucan & Yuliang Miao, 2000. "Distributional Impacts of Generic Advertising on Related Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 672-678.
    5. H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 261-267, January.
    6. Hui-Shung Chang & Henry W. Kinnucan, 1991. "Economic effects of an advertising excise tax," Agribusiness, John Wiley & Sons, Ltd., vol. 7(2), pages 165-173.
    7. Kinnucan, Henry W. & Christian, Jason E., 1997. "A Method For Measuring Returns To Nonprice Export Promotion With Application To Almonds," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(1), pages 1-13, July.
    8. Timothy J. Richards & Pieter. Van Ispelen & Albert Kagan, 1997. "A Two-Stage Analysis of the Effectiveness of Promotion Programs for U.S. Apples," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 825-837.
    9. Halliburton, Karen & Henneberry, Shida Rastegari, 1995. "The Effectiveness Of U.S. Nonprice Promotion Of Almonds In The Pacific Rim," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-14, July.
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    Cited by:

    1. Freixanet, Joan, 2022. "Export promotion programs: A system-based systematic review and agenda for future research," Journal of World Business, Elsevier, vol. 57(4).
    2. Henry W. Kinnucan & Øystein Myrland, 2002. "The Relative Impact of the Norway‐EU Salmon Agreement: a Mid‐term Assessment," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 195-219, July.
    3. Williams, Gary W. & Capps Jr., Oral, 2020. "Generic promotion of Norwegian seafood exports," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    4. Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2008. "Taxes and subsidies to change eating habits when information is not enough: an application to fish consumption," Journal of Regulatory Economics, Springer, vol. 34(2), pages 119-143, October.
    5. Williams, Gary W. & Capps, Jr., Oral, 2022. "The apparent conflict of Norwegian pelagic fisheries management and Norwegian seafood council export promotion," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(3), February.
    6. 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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