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Are More Exports Always Better? Comparing Cash and In‐Kind Export Subsidies
Author(s) -
Chambers Robert G.,
Paarlberg Philip L.
Publication year - 1991
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242890
Subject(s) - subsidy , loan , cash , point (geometry) , economics , business , monetary economics , finance , international economics , market economy , geometry , mathematics
Cash and in‐kind export subsidies are compared. It is found that the ability to enhance real farm income via export subsidies is sensitive both to the form (cash vs. in‐kind) and the point of policy intervention. In‐kind subsidies of the type granted under the Export Enhancement Program can in fact reduce real‐farm income. Export subsidies are examined under three separate scenarios: no target price or nonrecourse loan programs, a target price but no nonrecourse loan program; and a nonrecourse loan program but no target price program. The presence of a nonrecourse loan program dampens the impacts of both cash and in‐kind export subsidies.