From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal
In 2010 or 2011, Nepal set up a cash incentive scheme for exporters aimed at reducing its trade deficit and vulnerability to external shocks, by promoting export growth and diversification for its firms. The Trade and Competitiveness Global Practic...
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| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26564533/evidence-policy-supporting-nepal’s-trade-integration-strategy-assessment-impact-cash-incentive-promote-export-diversification-nepal-policy-note-4 http://hdl.handle.net/10986/24934 |
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okr-10986-249342021-05-25T08:50:36Z From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal Pazzini, Aldo Reyes, Daniel Varela, Gonzalo conditional cash transfer export diversification trade facilitation trade promotion export competitiveness In 2010 or 2011, Nepal set up a cash incentive scheme for exporters aimed at reducing its trade deficit and vulnerability to external shocks, by promoting export growth and diversification for its firms. The Trade and Competitiveness Global Practice has been partnering with the Government of Nepal to assess the impact of the cash incentive program on export growth and diversification. This note presents the main results of the analysis. Making the support to firms’ internationalization a policy priority is commendable Countries around the world, and many countries in the South Asia region have incentives in place to help firms become exporters and succeed in diversifying their export markets.But not all interventions designed to support firms’ internationalization work, so, evaluating impact is crucial.Some of the planned changes in the scheme introduced in 2013 revealed public-private dialogue. However, many of these changes have not been fully implemented. The fast-track system introduced in 2013, and by which, firms exporting priority products would not need to certify domestic value addition reflect the systematic feedback of the private sector on the complexity of proving value added content.At the firm level there is no evidence showing a clear link between the effective incentive rates received and export performance, or the changes in the export incentive scheme and performance. The main policy conclusion that emerges from this analysis is that the current incentive scheme needs to be revised. The rest of the note is structured as follows. Section two discusses aspects of the design of the allocation mechanism of the incentive. Section three shows the impact of the incentive program from the aggregate level, at the product level and at the firm level. 2016-08-25T16:06:34Z 2016-08-25T16:06:34Z 2016-06-01 Report http://documents.worldbank.org/curated/en/2016/07/26564533/evidence-policy-supporting-nepal’s-trade-integration-strategy-assessment-impact-cash-incentive-promote-export-diversification-nepal-policy-note-4 http://hdl.handle.net/10986/24934 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work South Asia Nepal |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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| language |
English en_US |
| topic |
conditional cash transfer export diversification trade facilitation trade promotion export competitiveness |
| spellingShingle |
conditional cash transfer export diversification trade facilitation trade promotion export competitiveness Pazzini, Aldo Reyes, Daniel Varela, Gonzalo From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal |
| geographic_facet |
South Asia Nepal |
| description |
In 2010 or 2011, Nepal set up a cash
incentive scheme for exporters aimed at reducing its trade
deficit and vulnerability to external shocks, by promoting
export growth and diversification for its firms. The Trade
and Competitiveness Global Practice has been partnering with
the Government of Nepal to assess the impact of the cash
incentive program on export growth and diversification. This
note presents the main results of the analysis. Making the
support to firms’ internationalization a policy priority is
commendable Countries around the world, and many countries
in the South Asia region have incentives in place to help
firms become exporters and succeed in diversifying their
export markets.But not all interventions designed to support
firms’ internationalization work, so, evaluating impact is
crucial.Some of the planned changes in the scheme introduced
in 2013 revealed public-private dialogue. However, many of
these changes have not been fully implemented. The
fast-track system introduced in 2013, and by which, firms
exporting priority products would not need to certify
domestic value addition reflect the systematic feedback of
the private sector on the complexity of proving value added
content.At the firm level there is no evidence showing a
clear link between the effective incentive rates received
and export performance, or the changes in the export
incentive scheme and performance. The main policy
conclusion that emerges from this analysis is that the
current incentive scheme needs to be revised. The rest of
the note is structured as follows. Section two discusses
aspects of the design of the allocation mechanism of the
incentive. Section three shows the impact of the incentive
program from the aggregate level, at the product level and
at the firm level. |
| format |
Report |
| author |
Pazzini, Aldo Reyes, Daniel Varela, Gonzalo |
| author_facet |
Pazzini, Aldo Reyes, Daniel Varela, Gonzalo |
| author_sort |
Pazzini, Aldo |
| title |
From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal |
| title_short |
From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal |
| title_full |
From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal |
| title_fullStr |
From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal |
| title_full_unstemmed |
From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Assessment of the Impact of the Cash Incentive to Promote Export Diversification in Nepal |
| title_sort |
from evidence to policy supporting nepal’s trade integration strategy : assessment of the impact of the cash incentive to promote export diversification in nepal |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/07/26564533/evidence-policy-supporting-nepal’s-trade-integration-strategy-assessment-impact-cash-incentive-promote-export-diversification-nepal-policy-note-4 http://hdl.handle.net/10986/24934 |
| _version_ |
1764457939777617920 |