Assessing the efficiency of exchange rate-linked subsidies (ERLS) for non-price export promotion: The case of cotton

Laxmi Paudel, Murali Adhikari, Jack E. Houston and Henry Kinnucan
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Laxmi Paudel: Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall 205, Athens, GA 30602, Postal: Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall 205, Athens, GA 30602
Murali Adhikari: Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall 205, Athens, GA 30602, Postal: Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall 205, Athens, GA 30602
Jack E. Houston: Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall, Athens, GA 30602, Postal: Department of Agricultural and Applied Economics, The University of Georgia, Conner Hall, Athens, GA 30602

Agribusiness, 2004, vol. 20, issue 4, 481-493

Abstract: Notwithstanding substantial federal financial support for the export promotion of agricultural products, ways to enhance the effectiveness of federal funding have not been discussed in empirical research. In this study, an equilibrium displacement framework was developed to evaluate whether the efficacy of export promotion expenditures could be increased by linking them with changes in the exchange rate. In our analysis, the gross gain to domestic cotton producers from the exchange rate linked subsidy scheme was positive. Findings support exchange rate linked subsidies for export promotion of agricultural products. [EconLit citations: Q110, Q130.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 481-493, 2004.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:20:y:2004:i:4:p:481-493

DOI: 10.1002/agr.20025

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