Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
Many countries use duty drawbacks on exports, yet they have been given little attention in the literature and there is no consensus whether countries should embrace or abandon them. The author asserts that the answer depends on a country s development priorities and economic conditions. An increase in the drawback has a positive impact on export competitiveness and employment, but could lead to exports with low domestic value added. The welfare effects of duty drawback reform are ambiguous. An increase in the drawback is more likely to be welfare improving if the economy is small with high input tariffs, low initial drawback, low administrative costs, and leakages in the tariff collection system. In China duty drawback removal after meeting WTO commitments will deepen domestic supply chains and improve welfare, but will hurt China s economic efficiency, export competitiveness, and real factor incomes. Further liberalization could mitigate these negative effects.
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Bibliographic Details
| Main Author: |
Ianchovichina, Elena |
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| Format: | Policy Research Working Paper
biblioteca
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| Language: | English |
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| Published: |
World Bank, Washington, DC
2005-02
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| Subjects: | ALLOCATIVE EFFICIENCY,
BILATERAL TRADE,
CAPITAL GOODS,
COMPETITIVE MARKETS,
COMPETITIVENESS,
CONSUMERS,
CUSTOMS,
DEVELOPED COUNTRIES,
DOMESTIC MARKET,
DOMESTIC MARKETS,
ECONOMIC CONDITIONS,
ECONOMIC EFFECTS,
ECONOMIC EFFICIENCY,
ECONOMIC GEOGRAPHY,
ECONOMIC THEORY,
ECONOMICS,
ECONOMISTS,
ELASTICITIES,
ELASTICITY,
EQUILIBRIUM,
EXPORT MARKETS,
EXPORT PROMOTION,
EXPORTS,
FACTOR PRICES,
FREE TRADE,
FULL EMPLOYMENT,
FUNCTIONAL FORMS,
GDP,
GENERAL EQUILIBRIUM,
GENERAL EQUILIBRIUM MODEL,
GOVERNMENT EXPENDITURES,
IMPERFECT SUBSTITUTES,
IMPORTS,
INCOME,
INPUT USE,
INTERMEDIATE INPUTS,
INTERMEDIATE PRODUCTS,
MARKET STRUCTURE,
POLICY MAKERS,
POLITICAL ECONOMY,
PRODUCERS,
PRODUCT DIFFERENTIATION,
PRODUCTION FUNCTION,
PRODUCTION FUNCTIONS,
PRODUCTION INCREASES,
PRODUCTION PROCESS,
PROTECTIONISM,
REBATES,
RESOURCE ALLOCATION,
SAVINGS,
SUBSTITUTION,
SUPPLY CHAINS,
SUPPLY CURVE,
TARIFF REFORM,
TAX RATES,
TAX REVENUE,
TERMS OF TRADE,
TRADE BALANCE,
TRADE BARRIERS,
TRADE BLOCS,
TRADE LIBERALIZATION,
TRADE POLICIES,
TRADE REFORM,
TRADE REGIME,
UTILITY FUNCTION,
VALUE ADDED,
VOLUNTARY EXPORT RESTRAINTS,
WELFARE EFFECTS,
WELFARE FUNCTION,
WTO, |
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| Online Access: | http://documents.worldbank.org/curated/en/2005/02/5604247/duty-drawbacks-competitiveness-growth-duty-drawbacks-worth-hassle
http://hdl.handle.net/10986/8890
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