The Value of Export Incentives

Ahmad, Imtiaz

doi:10.35536/lje.2015.v20.i2.a5

Cited by 10 publications

(7 citation statements)

References 14 publications

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“…The result also congruent with new trade theories based on market imperfection, infant industry argument and neo mercantilism theory providing incentive will stimulate the economy. Besides, this result is consistence with study of Munch and Schaur (2015) in Denmark; Ahmad (2015) in Bangladesh; Ashenafi and Getaneh (2013) and Tewelde (2015) in Ethiopia.…”

Section: Long Run Ardl Model Estimationsupporting

confidence: 86%

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The Nexus between Export Incentive and Export Performance in Ethiopia

Ayen¹,

Gebremedhin

2018

SSRN Journal

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The purpose of this study is to examine the nexus between export incentive and Ethiopian export performance from the year 1983 to 2017. The study is conducted by quantitative research method by using time series econometrics analysis. The study employs an Autoregressive Distributed Lag (ARDL) bound test model to cointegration in order to investigate the long run relationship and Error Correction Model (ECM) for the short-run relationship between export and export incentive, real GDP, real exchange rate, gross capital formation, external debt stock and inflation rate. The long-run empirical result using the bound test reveals that there is a stable longrun relationship between real export and explanatory variables. The study finds out that during study period the Ethiopian export composition mainly focused on primary product and Europe was main export destination. In the econometric analysis, the study finds that export incentive has the significant positive impact on export performance both in short run and long run. Similarly, real GDP and inflation have the significant impact on export performance whereas gross capital formation, real exchange rate and external debt have the insignificant impact in short run and long run during the study period. Further, in short run one year lagged values of export and external debt have positive impact on export performance. The coefficient of equilibrating error term suggests that the speed of adjustment (feedback effects towards the long run equilibrium) takes few years for full adjustment when there is a shock in the system. Therefore, export incentive and export performance in Ethiopia have direct relationship both in the short run and in long run.

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Section: Long Run Ardl Model Estimationsupporting

confidence: 86%

“…The export incentive has great significance to increase the export performance of the country. The industries planted from Pakistan through time-shifted to Bangladesh and India due to lower export incentive (Ahmad, 2015).…”

Section: Empirical Investigationmentioning

confidence: 99%

The Nexus between Export Incentive and Export Performance in Ethiopia

Ayen¹,

Gebremedhin

2018

SSRN Journal

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“…Chen et al (2006) investigated the effect of tax rebates and export performance in China for the period of 1985-2002 and concluded that, when the rate of an export rebate is raised by the government, it leads to a decrease in the output and profitability of foreign competitors and an increase in the output of finished goods and profitability of domestic firms. A comparison study of Pakistan, India, and Bangladesh was conducted by Ahmad (2015) on the value of export incentives for 2001-2011. The comparative analysis findings indicate that, due to having the highest export incentives, Bangladesh's textile sector is more export oriented than those of India and Pakistan.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Vietnam's share increased to 1.17% from 0.14%, and India's share increased to 1.65% from 0.61%. In Pakistan, since the financial year 1981-82, the largest decline in exports recorded in a single year, 13%, occurred in the financial year 2015-16 (State Bank of Pakistan, 2017. The trend of Pakistan's exports is shown below in Figure 1.…”

Section: Introductionmentioning

confidence: 99%

The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan

Ullah

Pinglu

Ullah

et al. 2020

Heliyon

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The study aimed to analyse the role of the capital structure in the financial performance of 90 textile firms listed in Pakistan Stock Exchange (PSX) during the period 2008–2017. The dependent variable was return on equity as a proxy for financial performance. The independent variables were the debt to equity, total debt to total assets, asset turnover ratios, sales growth, taxation, and export growth, while the firm size was taken as a control variable. The panel regression estimation technique was employed for analysis purposes, and both cross-sectional and time-series data were collected for this study. This study used the random-effect regression estimation model based on the Hausman diagnostic test statistics. The results indicate that the capital structure debt to equity variable has a negative and significant relationship with financial performance while the asset turnover ratio and firm performance showed a negative and statistically insignificant relationship. Export growth and sales growth have a considerable positive connection with financial performance; however, firm size has a negative and significant impact on firm performance, in favour of our alternative research hypothesis. The remaining variables include tax payable and the total debt to total assets ratio, which have an insignificant connection with financial performance (ROE) and validate the agency theory. With better corporate governance by putting more pressure on managers or increasing managerial ownership, institutional investors can reduce the capital, leverage risk and the overall firm capital cost that help to improve the firm's financial performance and economic stability.

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“…(Haddoud, Jones and Newbery, 2017)argues that "all kinds of informational and experiential promotion programs improve all relationships of Small and Medium Enterprises while it is helpful to build strong relationship with foreign buyers". (Ahmad, 2015) indicates "a direct relation between the levels of export is to incentives". There are also numbers of studies that do not support arguments.…”

Section: 1mentioning

confidence: 99%

SMEs Exports are Influenced by Different Risk Factors: Empirical Study of Emerging Economy

Nosheen

Khan

Rehman

2020

JAFEE

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Study intent to identify the direct (indirect) risk factors that can influence the export of medical instruments from SMEs sector of Pakistan by using the time series monthly data sample for a period of fifteen years that is from FY 2003 to FY 2017. Empirically a strong long term relation between the export of medical instruments with operational risk, market risk, export refinance schemes and steel prices are proven by Johansen co-integration. Study also establishes a direct positive relation of operational risk and market risk with the export of medical instruments as a result of Vector Error Correction Model.

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The Value of Export Incentives

Cited by 10 publications

References 14 publications

The Nexus between Export Incentive and Export Performance in Ethiopia

The Nexus between Export Incentive and Export Performance in Ethiopia

The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan

SMEs Exports are Influenced by Different Risk Factors: Empirical Study of Emerging Economy

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