The Dubious Success of Export Subsidies for Wheat
Cletus C. Coughlin and Kenneth C. Carraro examine this export program. The authors find that, while the EEP has increased wheat exports, the short-run costs of doing so have been higher than other surplus disposal alternatives. In addition, the authors provide evidence suggesting that the EEP may be ineffective, and possibly counterproductive, in changing the EC’s agricultural negotiating position.
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