Are More Exports Always Better? Comparing Cash and In-Kind Export Subsidies

Robert G. Chambers and Philip L. Paarlberg

American Journal of Agricultural Economics, 1991, vol. 73, issue 1, 142-154

Abstract: Cash and in-kind export subsidies are compared. It is found that the ability to enhance real farm income via export subsidies is sensitive both to the form (cash vs. in-kind) and the point of policy intervention. In-kind subsidies of the type granted under the Export Enhancement Program can in fact reduce real-farm income. Export subsidies are examined under three separate scenarios: no target price or nonrecourse loan programs, a target price but no nonrecourse loan program; and a nonrecourse loan program but no target price program. The presence of a nonrecourse loan program dampens the impacts of both cash and in-kind export subsidies.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:73:y:1991:i:1:p:142-154.

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