ASSESSING THE EFFICIENCY OF EXCHANGE RATE-LINKED SUBSIDIES FOR NON-PRICE EXPORT PROMOTION: THE CASE OF COTTON

Notwithstanding substantial federal financial support for the export promotion of agricultural products, ways to improve the efficiency of federal funding have not been discussed in empirical research. In this study, an equilibrium displacement framework was developed to evaluate whether the efficiency 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.


Issue Date:
2002
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/16658
PURL Identifier:
http://purl.umn.edu/16658
Total Pages:
23
Series Statement:
Faculty Series 02-10




 Record created 2017-04-01, last modified 2018-01-22

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