A note on measuring returns to nonprice export promotion

Henry Kinnucan and Øystein Myrland
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Øystein Myrland: Department of Economics and Management, University of Tromsø,, 9037 Tromsø, Norway. E-mail: oysteinm@nfh.uit.no, Postal: Department of Economics and Management, University of Tromsø,, 9037 Tromsø, Norway. E-mail: oysteinm@nfh.uit.no

Agribusiness, 2001, vol. 17, issue 3, 423-433

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.

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:17:y:2001:i:3:p:423-433

DOI: 10.1002/agr.1026

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