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The Effects of Tax and Promotion on Rubber Medical Devices Export

Author

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  • Lee, Siu Ming

    (Economics Section, School of Distance Education, Universiti Sains Malaysia 11700 Penang, MALAYSIA.)

  • Adam, Radziah

    (Economics Section, School of Distance Education, Universiti Sains Malaysia 11700 Penang, MALAYSIA.)

  • Tuan Lonik, Ku’ Azam

    (Economics Section, School of Distance Education, Universiti Sains Malaysia 11700 Penang, MALAYSIA.)

Abstract

This study examines the effects of cess and export promotion on rubber medical devices export by employing a modified gravity model. The export promotion activities include overseas office, trade missions and trade fairs. Using a balanced panel data of Malaysia, the findings show that cess reduces rubber medical devices export indicating its potential of limiting this export. The results further show that overseas office establishment increases rubber medical devices export growth. These two sets of policies, namely cess and export promotion activities are indeed intertwined and are difficult to be considered separately. In increasing global market share for rubber medical devices, Malaysia continues its export promotion efforts and cess is currently the sole funding.

Suggested Citation

  • Lee, Siu Ming & Adam, Radziah & Tuan Lonik, Ku’ Azam, 2020. "The Effects of Tax and Promotion on Rubber Medical Devices Export," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 29-40.
    • Handle: RePEc:ukm:jlekon:v:54:y:2020:i:2:p:29-40
    DOI: http://dx.doi.org/10.17576/JEM-2020-5402-3
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    References listed on IDEAS

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