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...

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Main Author:	Ianchovichina, Elena
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
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
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

id	okr-10986-8890
recordtype	oai_dc
spelling	okr-10986-88902021-04-23T14:02:42Z Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle? Ianchovichina, Elena 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 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. 2012-06-22T21:43:50Z 2012-06-22T21:43:50Z 2005-02 http://documents.worldbank.org/curated/en/2005/02/5604247/duty-drawbacks-competitiveness-growth-duty-drawbacks-worth-hassle http://hdl.handle.net/10986/8890 English Policy Research Working Paper; No. 3498 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	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
spellingShingle	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 Ianchovichina, Elena Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper; No. 3498
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Ianchovichina, Elena
author_facet	Ianchovichina, Elena
author_sort	Ianchovichina, Elena
title	Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
title_short	Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
title_full	Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
title_fullStr	Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
title_full_unstemmed	Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?
title_sort	duty drawbacks, competitiveness and growth : are duty drawbacks worth the hassle?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/02/5604247/duty-drawbacks-competitiveness-growth-duty-drawbacks-worth-hassle http://hdl.handle.net/10986/8890
_version_	1764406921130934272

Duty Drawbacks, Competitiveness and Growth : Are Duty Drawbacks Worth the Hassle?

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