Measuring the effectiveness of non-price export promotion using a supply-side approach

C. Shumway, H. Love and Juan J. Porras
Additional contact information
Juan J. Porras: U.S. Customs, Department of the Treasury, Laredo, TX, 78045 USA

Empirical Economics, 2001, vol. 26, issue 2, 367-389

Abstract: In this paper we assess the effectiveness of the Market Promotion Program (MPP) in increasing U.S. exports and benefitting U.S. agricultural producers and food processors. Export shipments are linked to producer welfare using Kohli's (1978) profit maximization (GNP function) approach to modeling international trade. Using estimated profit functions in conjunction with a synthetic export demand function for processed agricultural products, we compute changes in farm and food processing sector profits that result from alternative own-price and advertising elasticities of export demand with and without the MPP subsidy. This approach allows us to investigate aggregate welfare effects of nonprice promotion without requiring the difficult task of estimating the export demand effects of market promotion activities for numerous commodities and importing countries.

Keywords: export; promotion; ·; international; trade; ·; GNP; function; ·; food; manufacturing (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2001-05-21
Note: received: April 1999/Final version received: June 2000
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.de/link/service/journals/00181/papers/1026002/10260367.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:26:y:2001:i:2:p:367-389

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().