Determinants of Use of Government Export Promotion Programs by Agribusiness Firms

The Foreign Agricultural Service of the U.S. Department of Agriculture (USDA) has been criticized because it appears to favor allocation of Market Promotion Program (MPP) funds to large firms. Because of competition for markets, the USDA has been admonished to devote more attention to export promotion, especially to small firms at the state level. This paper determines that North Carolina providers of export promotion services must place greater emphasis on dissemination information and providing technical assistance to change attitudes toward exporting and export promotion. Also, while high export sales, per se, are not a good indicator for the use of export promotion programs, positive opinions about export promotion and a firm’s growth are good predictors for use of export promotion programs.