Economics at your fingertips  

Impact of Export Subsidies on Pakistan’s Exports

Nadeem Ul Haque and M. Ali Kemal ()
Additional contact information
Nadeem Ul Haque: Pakistan Institute of Development Economics, Islamabad.

No 2007:26, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: Throughout Pakistan’s history, policy has sought to promote exports through government support and incentives. The government machinery is geared to export promotion especially through direct and indirect subsidies. Surprisingly, these policies have been continued without serious examination. This paper makes a first attempt to evaluate these policies by estimating the impact of two such schemes—export financing and rebate/refund schemes—on export performance. Our analysis shows that, over the long run, the export financing scheme had a negative effect on exports while the rebate/refund scheme affected exports insignificantly. Subsidy schemes clearly do not seem to work, yet they have been retained for many years.

Keywords: Rebate; Duty Drawback; Export Financing; Exports; Trade; Exchange Rate; Co-integration; Vector Error Correction; Pakistan (search for similar items in EconPapers)
JEL-codes: C32 F13 F14 F31 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2007
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-his and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link) First Version, 2007 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in PIDE-Working Papers from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().

Page updated 2023-03-26
Handle: RePEc:pid:wpaper:2007:26