EFFECTS OF NON-PRICE EXPORT PROMOTION: SOME EVIDENCE FOR COTTON

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.


Subject(s):
Issue Date:
1993-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22380
Published in:
Australian Journal of Agricultural Economics, Volume 37, Number 1
Page range:
1-15
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-24

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