Export Performance and Export-Import Linkage Requirements

Herander, Mark G.; Thomas, Christopher R.

doi:10.2307/1885698

Cited by 13 publications

(6 citation statements)

References 3 publications

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“…Literature on the theoretical impact of export requirements centres around how the benchmark for evaluation of welfare increases is measured. If one calculates welfare increases against the benchmark of a perfectly competitive free trade scenario there is no doubt that export restrictions would be welfare reducing as they impose a welfare reducing distortion into the market for traded goods (Batra, 1972;Herander and Thomas, 1986;Safarian, 1983). However, it has been argued by Rodrik (1987) that sectors in which performance requirements have been imposed are transportation equipment, chemicals and machinery where the prevailing market form is oligopoly.…”

Section: Exports and Fdimentioning

confidence: 99%

Incentives for Attracting FDI in South Asia

Das¹,

Pant

2006

International Studies

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Incentive offers along with performance requirements are a notable feature of the Foreign Direct Investment (FDI) policies of South Asian countries after they opened up to trade and investment in the 1990s. Since FDI operates in an imperfect market environment, a government policy that tries to counter this imperfection by insisting on performance requirements could well improve welfare. Incentives are then offered to soften the impact of performance requirements. There are no systematic studies to assess the cost and benefits of these incentives offered competitively in South Asian countries. Often, the purpose of these incentives may have been to generate funds for side payments to the bureaucracy of host countries. Incentives seem to affect mainly footloose FDI or, at best, lead to relocation of FDI within a region. This latter advantage disappears when countries of a region tend to compete in incentives. The limited number of studies on the South Asian region that are available seem to identify an increase in employment and/or wages, reduced prices or improved product quality, more revenues for the government and indirect benefits through professionalism, learning and technology diffusion as benefits. The impact of providing facilitation to foreign investors on national savings, deterioration in trade conditions and balance of payments are cited as the cost of incentives. Coordination in FDI policy making among South Asian countries is the main policy prescription that emerges out of this study.

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Section: Exports and Fdimentioning

confidence: 99%

Incentives for Attracting FDI in South Asia

Das¹,

Pant

2006

International Studies

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“…Further analysis can be found in Grossman (1981), Davidson et al (198.5). Rodrik (1987), Herander and Thomas (1986), Fried and Falvey (1986), Greenaway (1990), Richardson (1990a;1990b) and Balasubramanyam (1990).…”

Section: Trims: Objectives and Resource Allocation Effectsmentioning

confidence: 99%

Trade Related Investment Measures: Political Economy Aspects and Issues for GATT

Greenaway

1990

World Economy

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“…3 Local content regulations, which require that a foreign firm uses a certain minimum amount of domestically produced inputs in producing its final output, are commonplace internationally and have been increasing in popularity in developed and developing countries alike (United Nations Industrial Development Organization, 1986). For example, the automobile industries in many countries are subject to these regulations (Herander and Thomas, 1986) and the oil refining industry in the USA (Krugman and Obstfeld, 1994). The WTO is very much cognisant of the fact that local content requirement is used pervasively to restrict the international mobility of capital and has incorporated its elimination into the WTO treaty as its long term objective.…”

Section: Introductionmentioning

confidence: 99%

Export–Oriented Foreign Direct Investment and Local Content Requirement

Lahiri

Ono

2003

Pacific Economic Review

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We develop a model in which foreign firms locate in a host country and export their produce to another (consuming) country. We consider both exogenous and endogenous numbers of foreign firms. These firms compete with domestic firms in the consuming country under oligopoly. Unemployment exists in both countries. We analyse the conflict of interest between the two countries on the level of local content for the foreign firms. Under free entry of foreign firms, the consuming country may want a less severe restriction on local contents than the host country, but not so when the number of foreign firms is exogenous.

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Export Performance and Export-Import Linkage Requirements

Cited by 13 publications

References 3 publications

Incentives for Attracting FDI in South Asia

Incentives for Attracting FDI in South Asia

Trade Related Investment Measures: Political Economy Aspects and Issues for GATT

Export–Oriented Foreign Direct Investment and Local Content Requirement

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