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Trade Taxes and Welfare: The Case of Export Incentives in South‐East Asian Countries

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  • Rodney E. Falvey
  • Norman Gemmell

Abstract

It is now widely recognised that the distortions common in many developing countries lead to a bias against exporting. In consequence many governments have begun to provide export incentives aimed at compensating for this bias. This article begins by examining the range of such incentives offered in South‐East Asian countires. It then goes on to use the standard theory of the second‐best to develop a simple framework within which these policies can be assessed. The difficulties encountered in constructing a system of export incentives that will not introduce distortions of their own are highlighted. The constraints imposed by GATT obligations are also noted.

Suggested Citation

  • Rodney E. Falvey & Norman Gemmell, 1990. "Trade Taxes and Welfare: The Case of Export Incentives in South‐East Asian Countries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 23(4), pages 61-73, December.
    • Handle: RePEc:bla:ausecr:v:23:y:1990:i:4:p:61-73
    DOI: 10.1111/j.1467-8462.1990.tb00371.x
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    References listed on IDEAS

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    1. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
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    Cited by:

    1. Harris, Richard G. & Schmitt, Nicolas, 2001. "Strategic export policy with foreign direct investment and import substitution," Journal of Development Economics, Elsevier, vol. 64(1), pages 293-312, February.

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