Abstract
Government-supported promotion in foreign markets may be justified when market failures exist, such as spillover externalities, where promotion of one commodity positively influences exports of another, or when market uncertainties cause planning horizons to be shorter than the persistent effects of promotion. A dynamic model of U.S. apple, almond, grape, and wine export supply is developed to test for these market failures. Promotion is viewed as an investment in establishing and maintaining a product's image. Evidence supporting the existence of each market failure is found. Exporters and program administrators may fail to account for them in export promotion planning.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 319-337 |
| Number of pages | 19 |
| Journal | Journal of Agricultural and Resource Economics |
| Volume | 23 |
| Issue number | 2 |
| State | Published - Dec 1 1998 |
Keywords
- Cost-of-adjustment model
- Dynamic duality
- Dynamic export supply
- Export promotion
- Fruits and vegetables
- MAP
- Product equity
ASJC Scopus subject areas
- Animal Science and Zoology
- Agronomy and Crop Science
- Economics and Econometrics