Export incentive: Difference between revisions

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{{infobox4
'''Export incentive''' is main ingredient of trade policy. It is exception to the general tax regime. It enables exporters to bring down prices without reducing their net profits. It has a positive impact on exports but in the same time it is causing loss of the [[government]] revenue. [[Export incentives]] are political attractive because their costs are less visible than that of other export promotion policies that engage explicit budget outlays. Export incentives, fiscal incentives and export promotions are significant part of economy's trade [[strategy]]. These strategies are crucial to reinforce the productivity of all sectors and to maintain international [[competitiveness]] <ref> Imtiaz A., 2015, p.100</ref>.</p>
|list1=
<ul>
<li>[[Key industry]]</li>
<li>[[Factors affecting pricing]]</li>
<li>[[Export incentives]]</li>
<li>[[Price control]]</li>
<li>[[Over-valued currency]]</li>
<li>[[Parallel economy]]</li>
<li>[[Protectionist policy]]</li>
<li>[[Cost-income ratio]]</li>
<li>[[International competitiveness]]</li>
</ul>
}}
 
 
'''Export incentive''' is main ingredient of trade policy. It is exception to the general tax regime. It enables exporters to bring down prices without reducing their net profits. It has a positive impact on exports but in the same time it is causing loss of the [[government]] revenue. [[Export incentives]] are political attractive because their costs are less visible than that of other export promotion policies that engage explicit budget outlays. Export incentives, fiscal incentives and export promotions are significant part of economy's trade [[strategy]]. These strategies are crucial to reinforce the productivity of all sectors and to maintain international [[competitiveness]] <ref> Imtiaz A., 2015, p.100</ref>.</p>


Form and extent of export incentives diverge from country to country according as the country's economic structure. Depends on overall budget country has to choose the best structure of export incentives to be able to achieve the objective of export promotion <ref>Ahuja R.,2001, p.4</ref>.</p>
Form and extent of export incentives diverge from country to country according as the country's economic structure. Depends on overall budget country has to choose the best structure of export incentives to be able to achieve the objective of export promotion <ref>Ahuja R.,2001, p.4</ref>.</p>
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* exemption from export duties.
* exemption from export duties.


== Footnotes ==
==Footnotes==
<references />  
<references />  


== References ==
{{infobox5|list1={{i5link|a=[[Price control]]}} &mdash; {{i5link|a=[[Galloping inflation]]}} &mdash; {{i5link|a=[[Barriers to trade]]}} &mdash; {{i5link|a=[[Over-valued currency]]}} &mdash; {{i5link|a=[[Emerging market economy]]}} &mdash; {{i5link|a=[[Non-tariff barriers]]}} &mdash; {{i5link|a=[[Income Shifting]]}} &mdash; {{i5link|a=[[Barriers to exit]]}} &mdash; {{i5link|a=[[Effects of tourism development]]}} }}
 
==References==
* Ahuja R.,(2001) ''[http://icrier.org/pdf/rajeev72try.PDF Export incentives in India within WTO framework]'', Working Paper NO. 72; Indian Council for Research on International Economic Relations Core-6A, 4th Floor, India Habitat Centre, Lodi Road, New Delhi-110 003
* Ahuja R.,(2001) ''[http://icrier.org/pdf/rajeev72try.PDF Export incentives in India within WTO framework]'', Working Paper NO. 72; Indian Council for Research on International Economic Relations Core-6A, 4th Floor, India Habitat Centre, Lodi Road, New Delhi-110 003
* Arozamena L., Weinschelbaum F.,(2012) ''[https://publications.iadb.org/publications/english/document/Incentive-Schemes-in-Export-and-Investment-Promotions.pdf Incentive Schemes in Export and Investment Promotions]'', IDB Publications (Working Papers) 4090, Inter-American [[Development bank|Development Bank]].
* Arozamena L., Weinschelbaum F.,(2012) ''[https://publications.iadb.org/publications/english/document/Incentive-Schemes-in-Export-and-Investment-Promotions.pdf Incentive Schemes in Export and Investment Promotions]'', IDB Publications (Working Papers) 4090, Inter-American [[Development bank|Development Bank]].
* Broll U., Wong K.P., (2014) ''[https://www.econstor.eu/bitstream/10419/144880/1/816914117.pdf Ambiguity and the incentive to export ]'', Dresden Discussion Paper Series in [[Economics]] 01/14, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics
* Broll U., Wong K.P., (2014) ''[https://www.econstor.eu/bitstream/10419/144880/1/816914117.pdf Ambiguity and the incentive to export ]'', Dresden Discussion Paper Series in [[Economics]] 01/14, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics
* Gebreyesus M., Demile A., (2017) ''[http://www.edri.org.et/Resources/Working_Papers/EDRI_WP017_Why_export_promotion_efforts%20.pdf Why export promotion efforts failed to deliver? Assessment of the export incentives and their implementation in Ethiopia]'', Working Papers 017, Ethiopian Development Research Institute
* Gebreyesus M., Demile A., (2017) ''[http://www.edri.org.et/Resources/Working_Papers/EDRI_WP017_Why_export_promotion_efforts%20.pdf Why export promotion efforts failed to deliver? Assessment of the export incentives and their implementation in Ethiopia]'', Working Papers 017, Ethiopian Development Research Institute
* Imtiaz A.,(2015) ''[http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/Journals/Volume%2020/Issue%202/05%20Ahmad%20ED%20AAC.pdf The Value of Export Incentives] '' Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(2), July-Dec.
* Imtiaz A.,(2015) ''[http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/Journals/Volume%2020/Issue%202/05%20Ahmad%20ED%20AAC.pdf The Value of Export Incentives] '' Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(2), July-Dec.
* Ledyayeva S., (2017) ''[http://discovery.ucl.ac.uk/1546505/1/Ledyayeva_Working%20Paper%202017.2-2.pdf Export incentives and global value chains]'' Economics and Business working paper series 2017(2), UCL School of Slavonic and East European Studies
* Ledyayeva S., (2017) ''[http://discovery.ucl.ac.uk/1546505/1/Ledyayeva_Working%20Paper%202017.2-2.pdf Export incentives and global value chains]'' Economics and Business working paper series 2017(2), UCL School of Slavonic and East European Studies  
* Penteado Neto P., (2012) ''[https://books.google.pl/books?id=GTJsVWY40wAC&pg=PA71&dq=Export+incentive&hl=pl&sa=X&ved=0ahUKEwjX06v_hM7hAhXJlosKHS2JAoEQ6AEIKDAA#v=onepage&q=Export%20incentive&f=false International Trade Subsidy Rules and Tax and Financial Export Incentives: From Limitations on Fiscal Sovereignty to Development-inducing Mechanisms]'' AuthorHouse, Cambridge
* Penteado Neto P., (2012) ''[https://books.google.pl/books?id=GTJsVWY40wAC&pg=PA71&dq=Export+incentive&hl=pl&sa=X&ved=0ahUKEwjX06v_hM7hAhXJlosKHS2JAoEQ6AEIKDAA#v=onepage&q=Export%20incentive&f=false International Trade Subsidy Rules and Tax and Financial Export Incentives: From Limitations on Fiscal Sovereignty to Development-inducing Mechanisms]'' AuthorHouse, Cambridge


{{a|Agnieszka Bednarek}}
{{a|Agnieszka Bednarek}}
[[Category: Economics]]
[[Category: Economics]]

Latest revision as of 21:13, 17 November 2023

Export incentive is main ingredient of trade policy. It is exception to the general tax regime. It enables exporters to bring down prices without reducing their net profits. It has a positive impact on exports but in the same time it is causing loss of the government revenue. Export incentives are political attractive because their costs are less visible than that of other export promotion policies that engage explicit budget outlays. Export incentives, fiscal incentives and export promotions are significant part of economy's trade strategy. These strategies are crucial to reinforce the productivity of all sectors and to maintain international competitiveness [1].

Form and extent of export incentives diverge from country to country according as the country's economic structure. Depends on overall budget country has to choose the best structure of export incentives to be able to achieve the objective of export promotion [2].

The rationale for using export incentives

Export incentives are used for the following reasons [3] :

  • depreciation of the exchange rate, which increments the profitability of exports,
  • high import content of export items can limit the incentive effect,
  • export incentives are more effective in targeting concrete exports, mainly value added and emerging exports.

Examples of export incentives

The most famous examples of export incentives are [4]:

  • lower income tax rates,
  • cash incentives,
  • tax incentives ( tax holidays, reduced tax rates on profits or income, lower tariffs on imported equipment, allowing accelerated depreciation),
  • zero-rating sales tax,
  • concessional export finance,
  • exemption from export duties.

Footnotes

  1. ↑ Imtiaz A., 2015, p.100
  2. ↑ Ahuja R.,2001, p.4
  3. ↑ Imtiaz A., 2015, p.100
  4. ↑ Imtiaz A., 2015, p.100


Export incentive — recommended articles
Price control — Galloping inflation — Barriers to trade — Over-valued currency — Emerging market economy — Non-tariff barriers — Income Shifting — Barriers to exit — Effects of tourism development

References

Author: Agnieszka Bednarek

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