4.5 Article

A Benefit-Cost Analysis of US Agricultural Trade Promotion

Journal

AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 93, Issue 1, Pages 194-208

Publisher

WILEY
DOI: 10.1093/ajae/aaq115

Keywords

benefit-cost analysis; export promotion; international trade; subsidy; D61; F14; Q11

Funding

  1. Hatch Projects [AD-421, ALA01-025]
  2. National Institute for Commodity Promotion and Evaluation, Cornell University

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Subsidies for nonprice export promotion can harm domestic consumers by increasing price in the domestic market and by diverting funds from domestic market promotion. Taking these consumer impacts into account, we find that federal expenditures for nonprice export promotion of farm products may be too high.

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