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The Effects of Trade Promotion on Canadian Agricultural Exports

Published online by Cambridge University Press:  10 May 2017

Kisan R. Gunjal
Kisan R. Gunjal*
Affiliation:
Department of Agricultural Economics, McGill University
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Abstract

Canadian agricultural trade promotion expenditures have dramatically increased from C$.4 million in 1969/70 to C$26.5 million in 1981/82. To evaluate the effect of these expenditures on agricultural exports an econometric analysis is presented in this study. The extended distributed lag model for export demand is developed and estimated using an iterative autoregressive least squares with instrumental variable (IALSI) method of estimation. The results reveal that the trade promotion programs (aggregate expenditure levels) have had a statistically significant effect on agricultural exports. The analysis of dynamic multipliers indicates that the effect of trade promotion expenditure on export levels is likely to decline gradually and last for about a five-year period. Also, the real export demand for aggregate agricultural products is found close to unitary elastic with respect to the real export price variable.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 14 , Issue 2 , October 1985 , pp. 183 - 192
Copyright
Copyright © 1985 Northeastern Agricultural and Resource Economics Association 

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Footnotes

The research grant provided by the Dean of Macdonald College of McGill University for this study is appreciated. The author gratefully acknowledges substantive comments made by Garth Coffin, Laurie Baker and anonymous reviewers of the Journal. Ms. Rejane Baril assisted in the data collection.

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