Abstract:
This research examines whether alternative methods of export commodity
promotion and market development, such as technical training and trade servicing
activities, have been successful in increasing the demand for grass seed produced in
Oregon in international markets. A single equation linear input demand model and
a linear model adjusted to introduce the effects of habit were those most successful
in explaining the demand for grass seed imports in the selected sample of countries.
The results show that market development and promotional initiatives, undertaken
by the Oregon Seed Council and partially financed by the Market Access Program,
have successfully increased the demand for grass seed in Chile and China,
countries where they were undertaken. Positive net rates of return for promotion,
based on current and expected future values minus seed production cost, have been
obtained for both Chile and China, for the entire sample of years.
