All These Worlds Are Yours, Except India : The Effectiveness of Export Subsidies in Nepal
This paper evaluates the effect on firm-level export outcomes of the Cash Incentive Scheme for Exports program provided by the Government of Nepal. The analysis utilizes customs-level data for 2011-14, combined with information on the subsidy payme...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/698681490020512516/All-these-worlds-are-yours-except-India-the-effectiveness-of-export-subsidies-in-Nepal http://hdl.handle.net/10986/26350 |
| Summary: | This paper evaluates the effect on
firm-level export outcomes of the Cash Incentive Scheme for
Exports program provided by the Government of Nepal. The
analysis utilizes customs-level data for 2011-14, combined
with information on the subsidy payments made to individual
firms provided by the Central Bank of Nepal. The Cash
Incentive Scheme for Exports cash subsidy is available to
firms exporting a select group of products, and requires
firms to export to countries other than India. Overall, the
subsidy has not produced a significant impact on firm-level
export values, prices, quantities, or their growth rates.
However, the study finds a small positive effect on the
number of eligible products exported to countries other than
India and the number of destination markets reached among
firms that receive the subsidy. These results are consistent
with the fact that the subsidy was granted primarily to
large exporters that were already shipping eligible products
to countries other than India. The findings suggest that
although the cash subsidy has not produced a significant
increase in exports, it has achieved a positive impact on
export diversification for firms that were already
satisfying the scheme's eligibility criteria. |
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