Manufacturer versus trading company export behavior: The US processed fruit industries

Abstract

Government export promotion programs are ultimately intended to increase exports of US products over the long run; however, empirical testing to determine the most efficient way to attain this goal is limited. Regression results from a time-series of five processed fruit industries indicate that direct exporters -- processors who themselves handle exports -- are far more likely to maintain export levels over time than trading companies. Generic promotion expenditures are found to increase only indirect exports, and indirect exports have a very limited effect on future direct exports. These results indicate that efficient export enhancement policy should encourage direct exporting by food processors. © 1997 John Wiley & Sons, Inc.