Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies
Despite fiscal and administrative reforms pursued by the Government of Madagascar since the mid 1980s, to prod economic and financial liberalization, contributing to steady GDP growth rates, manufacturing production however, still represents a relatively small share of value added. And, the development of import-substituting (IS) firms has been considerably slower, showing stagnating signs as these firms are unprepared for competition from imports unleashed by recent liberalization. The note looks at the present market structure which has created distortions, identifying several incentives by the Government, to firms located in the Export Processing Zones (EPZs), including a grace period on corporate taxes for the first 2-15 years of operations, exemption from customs duties and taxes on imported equipment; taxation of dividends at only 10 percent, and, 99-year leases for investment in land. The note further looks at the Common Law sector, i.e., those firms operating outside of EPZs, namely the IS firms, and the non-tradables sector, since most of the recent growth in the country's economy has come from non-tradables (construction, transport, beverages, and tobacco). Cross-cutting issues are identified by a survey of representative industries, showing a variety of factors affecting productivity, and reducing competitiveness. Recommendations include lower protection to make markets more contestable, but within lower, and more uniform taxation, to ease the fiscal burden on imported inputs, in an effort to encourage entry into the banking system, and improve the regulatory framework.
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dig-okr-1098697762021-04-23T14:02:47Z Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies Cadot, Olivier Nasir, John AGRICULTURE AUDITS BARRIERS TO ENTRY BRANCHES BUSINESS ENVIRONMENT COMPANY COMPETITION LAW COMPETITIVENESS CORPORATE TAXES EXPORTS FIRMS FOREIGN BANKS GDP GOVERNMENT REGULATIONS GROWTH RATE IMPORT BARRIERS IMPORTS INEFFICIENCY LABOR COSTS LAWS LEGISLATION OLIGOPOLY PRIVATIZATION PRODUCTIVITY PUBLIC SERVICES QUOTAS STATE INTERVENTION TAXATION TELECOMMUNICATIONS TRADE BARRIERS TRANSPORT VALUE ADDED TRADE DEVELOPMENT MANUFACTURING ENTERPRISES MANUFACTURING PRODUCTION FISCAL REFORMS ADMINISTRATIVE REFORMS ECONOMIC LIBERALIZATION FINANCIAL LIBERALIZATION GROSS DOMESTIC PRODUCT EXPORT DEVELOPMENT FREE ZONES IMPORT SUBSTITUTION IMPORT REGULATIONS DOMESTIC MARKETS TRADE LIBERALIZATION COMPETITIVENESS CASE STUDIES TRADE BARRIERS COMMON LAW INDUSTRIAL PRODUCTIVITY INFRASTRUCTURE BANKING SYSTEMS FINANCIAL DEVELOPMENT PROTECTIVE TARIFFS TAXATION IMPORTS REGULATORY FRAMEWORK Despite fiscal and administrative reforms pursued by the Government of Madagascar since the mid 1980s, to prod economic and financial liberalization, contributing to steady GDP growth rates, manufacturing production however, still represents a relatively small share of value added. And, the development of import-substituting (IS) firms has been considerably slower, showing stagnating signs as these firms are unprepared for competition from imports unleashed by recent liberalization. The note looks at the present market structure which has created distortions, identifying several incentives by the Government, to firms located in the Export Processing Zones (EPZs), including a grace period on corporate taxes for the first 2-15 years of operations, exemption from customs duties and taxes on imported equipment; taxation of dividends at only 10 percent, and, 99-year leases for investment in land. The note further looks at the Common Law sector, i.e., those firms operating outside of EPZs, namely the IS firms, and the non-tradables sector, since most of the recent growth in the country's economy has come from non-tradables (construction, transport, beverages, and tobacco). Cross-cutting issues are identified by a survey of representative industries, showing a variety of factors affecting productivity, and reducing competitiveness. Recommendations include lower protection to make markets more contestable, but within lower, and more uniform taxation, to ease the fiscal burden on imported inputs, in an effort to encourage entry into the banking system, and improve the regulatory framework. 2012-08-13T09:30:36Z 2012-08-13T09:30:36Z 2002-03 http://documents.worldbank.org/curated/en/2002/03/1765874/madagascar-incentives-obstacles-trade-lessons-manufacturing-case-studies http://hdl.handle.net/10986/9776 English Africa Region Findings & Good Practice Infobriefs; No. 202 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Africa Madagascar |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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dig-okr |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
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English |
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AGRICULTURE AUDITS BARRIERS TO ENTRY BRANCHES BUSINESS ENVIRONMENT COMPANY COMPETITION LAW COMPETITIVENESS CORPORATE TAXES EXPORTS FIRMS FOREIGN BANKS GDP GOVERNMENT REGULATIONS GROWTH RATE IMPORT BARRIERS IMPORTS INEFFICIENCY LABOR COSTS LAWS LEGISLATION OLIGOPOLY PRIVATIZATION PRODUCTIVITY PUBLIC SERVICES QUOTAS STATE INTERVENTION TAXATION TELECOMMUNICATIONS TRADE BARRIERS TRANSPORT VALUE ADDED TRADE DEVELOPMENT MANUFACTURING ENTERPRISES MANUFACTURING PRODUCTION FISCAL REFORMS ADMINISTRATIVE REFORMS ECONOMIC LIBERALIZATION FINANCIAL LIBERALIZATION GROSS DOMESTIC PRODUCT EXPORT DEVELOPMENT FREE ZONES IMPORT SUBSTITUTION IMPORT REGULATIONS DOMESTIC MARKETS TRADE LIBERALIZATION COMPETITIVENESS CASE STUDIES TRADE BARRIERS COMMON LAW INDUSTRIAL PRODUCTIVITY INFRASTRUCTURE BANKING SYSTEMS FINANCIAL DEVELOPMENT PROTECTIVE TARIFFS TAXATION IMPORTS REGULATORY FRAMEWORK AGRICULTURE AUDITS BARRIERS TO ENTRY BRANCHES BUSINESS ENVIRONMENT COMPANY COMPETITION LAW COMPETITIVENESS CORPORATE TAXES EXPORTS FIRMS FOREIGN BANKS GDP GOVERNMENT REGULATIONS GROWTH RATE IMPORT BARRIERS IMPORTS INEFFICIENCY LABOR COSTS LAWS LEGISLATION OLIGOPOLY PRIVATIZATION PRODUCTIVITY PUBLIC SERVICES QUOTAS STATE INTERVENTION TAXATION TELECOMMUNICATIONS TRADE BARRIERS TRANSPORT VALUE ADDED TRADE DEVELOPMENT MANUFACTURING ENTERPRISES MANUFACTURING PRODUCTION FISCAL REFORMS ADMINISTRATIVE REFORMS ECONOMIC LIBERALIZATION FINANCIAL LIBERALIZATION GROSS DOMESTIC PRODUCT EXPORT DEVELOPMENT FREE ZONES IMPORT SUBSTITUTION IMPORT REGULATIONS DOMESTIC MARKETS TRADE LIBERALIZATION COMPETITIVENESS CASE STUDIES TRADE BARRIERS COMMON LAW INDUSTRIAL PRODUCTIVITY INFRASTRUCTURE BANKING SYSTEMS FINANCIAL DEVELOPMENT PROTECTIVE TARIFFS TAXATION IMPORTS REGULATORY FRAMEWORK |
| spellingShingle |
AGRICULTURE AUDITS BARRIERS TO ENTRY BRANCHES BUSINESS ENVIRONMENT COMPANY COMPETITION LAW COMPETITIVENESS CORPORATE TAXES EXPORTS FIRMS FOREIGN BANKS GDP GOVERNMENT REGULATIONS GROWTH RATE IMPORT BARRIERS IMPORTS INEFFICIENCY LABOR COSTS LAWS LEGISLATION OLIGOPOLY PRIVATIZATION PRODUCTIVITY PUBLIC SERVICES QUOTAS STATE INTERVENTION TAXATION TELECOMMUNICATIONS TRADE BARRIERS TRANSPORT VALUE ADDED TRADE DEVELOPMENT MANUFACTURING ENTERPRISES MANUFACTURING PRODUCTION FISCAL REFORMS ADMINISTRATIVE REFORMS ECONOMIC LIBERALIZATION FINANCIAL LIBERALIZATION GROSS DOMESTIC PRODUCT EXPORT DEVELOPMENT FREE ZONES IMPORT SUBSTITUTION IMPORT REGULATIONS DOMESTIC MARKETS TRADE LIBERALIZATION COMPETITIVENESS CASE STUDIES TRADE BARRIERS COMMON LAW INDUSTRIAL PRODUCTIVITY INFRASTRUCTURE BANKING SYSTEMS FINANCIAL DEVELOPMENT PROTECTIVE TARIFFS TAXATION IMPORTS REGULATORY FRAMEWORK AGRICULTURE AUDITS BARRIERS TO ENTRY BRANCHES BUSINESS ENVIRONMENT COMPANY COMPETITION LAW COMPETITIVENESS CORPORATE TAXES EXPORTS FIRMS FOREIGN BANKS GDP GOVERNMENT REGULATIONS GROWTH RATE IMPORT BARRIERS IMPORTS INEFFICIENCY LABOR COSTS LAWS LEGISLATION OLIGOPOLY PRIVATIZATION PRODUCTIVITY PUBLIC SERVICES QUOTAS STATE INTERVENTION TAXATION TELECOMMUNICATIONS TRADE BARRIERS TRANSPORT VALUE ADDED TRADE DEVELOPMENT MANUFACTURING ENTERPRISES MANUFACTURING PRODUCTION FISCAL REFORMS ADMINISTRATIVE REFORMS ECONOMIC LIBERALIZATION FINANCIAL LIBERALIZATION GROSS DOMESTIC PRODUCT EXPORT DEVELOPMENT FREE ZONES IMPORT SUBSTITUTION IMPORT REGULATIONS DOMESTIC MARKETS TRADE LIBERALIZATION COMPETITIVENESS CASE STUDIES TRADE BARRIERS COMMON LAW INDUSTRIAL PRODUCTIVITY INFRASTRUCTURE BANKING SYSTEMS FINANCIAL DEVELOPMENT PROTECTIVE TARIFFS TAXATION IMPORTS REGULATORY FRAMEWORK Cadot, Olivier Nasir, John Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies |
| description |
Despite fiscal and administrative
reforms pursued by the Government of Madagascar since the
mid 1980s, to prod economic and financial liberalization,
contributing to steady GDP growth rates, manufacturing
production however, still represents a relatively small
share of value added. And, the development of
import-substituting (IS) firms has been considerably slower,
showing stagnating signs as these firms are unprepared for
competition from imports unleashed by recent liberalization.
The note looks at the present market structure which has
created distortions, identifying several incentives by the
Government, to firms located in the Export Processing Zones
(EPZs), including a grace period on corporate taxes for the
first 2-15 years of operations, exemption from customs
duties and taxes on imported equipment; taxation of
dividends at only 10 percent, and, 99-year leases for
investment in land. The note further looks at the Common Law
sector, i.e., those firms operating outside of EPZs, namely
the IS firms, and the non-tradables sector, since most of
the recent growth in the country's economy has come
from non-tradables (construction, transport, beverages, and
tobacco). Cross-cutting issues are identified by a survey of
representative industries, showing a variety of factors
affecting productivity, and reducing competitiveness.
Recommendations include lower protection to make markets
more contestable, but within lower, and more uniform
taxation, to ease the fiscal burden on imported inputs, in
an effort to encourage entry into the banking system, and
improve the regulatory framework. |
| format |
Publications & Research :: Brief |
| topic_facet |
AGRICULTURE AUDITS BARRIERS TO ENTRY BRANCHES BUSINESS ENVIRONMENT COMPANY COMPETITION LAW COMPETITIVENESS CORPORATE TAXES EXPORTS FIRMS FOREIGN BANKS GDP GOVERNMENT REGULATIONS GROWTH RATE IMPORT BARRIERS IMPORTS INEFFICIENCY LABOR COSTS LAWS LEGISLATION OLIGOPOLY PRIVATIZATION PRODUCTIVITY PUBLIC SERVICES QUOTAS STATE INTERVENTION TAXATION TELECOMMUNICATIONS TRADE BARRIERS TRANSPORT VALUE ADDED TRADE DEVELOPMENT MANUFACTURING ENTERPRISES MANUFACTURING PRODUCTION FISCAL REFORMS ADMINISTRATIVE REFORMS ECONOMIC LIBERALIZATION FINANCIAL LIBERALIZATION GROSS DOMESTIC PRODUCT EXPORT DEVELOPMENT FREE ZONES IMPORT SUBSTITUTION IMPORT REGULATIONS DOMESTIC MARKETS TRADE LIBERALIZATION COMPETITIVENESS CASE STUDIES TRADE BARRIERS COMMON LAW INDUSTRIAL PRODUCTIVITY INFRASTRUCTURE BANKING SYSTEMS FINANCIAL DEVELOPMENT PROTECTIVE TARIFFS TAXATION IMPORTS REGULATORY FRAMEWORK |
| author |
Cadot, Olivier Nasir, John |
| author_facet |
Cadot, Olivier Nasir, John |
| author_sort |
Cadot, Olivier |
| title |
Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies |
| title_short |
Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies |
| title_full |
Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies |
| title_fullStr |
Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies |
| title_full_unstemmed |
Madagascar : Incentives and Obstacles to Trade - Lessons from Manufacturing Case Studies |
| title_sort |
madagascar : incentives and obstacles to trade - lessons from manufacturing case studies |
| publisher |
World Bank, Washington, DC |
| publishDate |
2002-03 |
| url |
http://documents.worldbank.org/curated/en/2002/03/1765874/madagascar-incentives-obstacles-trade-lessons-manufacturing-case-studies http://hdl.handle.net/10986/9776 |
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AT cadotolivier madagascarincentivesandobstaclestotradelessonsfrommanufacturingcasestudies AT nasirjohn madagascarincentivesandobstaclestotradelessonsfrommanufacturingcasestudies |
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1756572211115720704 |