Journal Article

A Two-Stage Analysis of the Effectiveness of Promotion Programs for U.S. Apples

Timothy J. Richards, Pieter. Van Ispelen and Albert Kagan

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 3, pages 825-837
Published in print August 1997 | ISSN: 0002-9092
Published online August 1997 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244424
A Two-Stage Analysis of the Effectiveness of Promotion Programs for U.S. Apples

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Export promotion programs are intended to help U.S. exporters enter, maintain, and expand foreign markets, but little is known of their success in achieving each of these goals. In this paper we attempt to determine the effectiveness of export promotion in increasing both U.S. market share and total import consumption using apple imports by Singapore and the United Kingdom as case studies. Estimates of a two-stage Linear Expenditure System (LES)/Almost Ideal Demand System (AIDS) model show that promotion increases consumption of apples in both the United Kingdom and Singapore, but increases U.S. market share only in the United Kingdom. The results suggest that free-riding on U.S. promotion can be significant.

Keywords: apples; export promotion; import demand systems; Singapore; two-stage budgeting; United Kingdom; Q130; Q170; Q180

Journal Article.  0 words. 

Subjects: Agricultural Economics

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