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

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.Marketing,

Demand elasticities for farmed salmon in world trade

The generalised demand specification of Barten and Eales et al. is used to estimate the world demand curves faced by major exporters of farmed salmon. Results suggest that the demand for farmed salmon has become less price elastic over time, fresh salmon from the UK faces the most competition in world markets and fresh salmon from Chile the least. Promotion programmes sponsored by the Norwegian Seafood Export Council appear to have increased the demand for fresh salmon at the expense of frozen salmon. Although the estimated promotion effects are small, the programme appears to have been remunerative from the Norwegian producer perspective. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email [email protected], Oxford University Press.