The Value of Export Incentives

Abstract

This study develops a methodology for the comparative analysis of industry-specific export incentives. The impact of different export incentives extended to the textiles sector in India, Pakistan, and Bangladesh is analyzed using industry-level data for the years 2001–11. Our findings show that Bangladesh operates a highly export-oriented regime – of the three countries, the value of its export incentives is highest. The study suggests that, in order to maintain its competitiveness in textile exports, Pakistan needs to enhance its export incentives, particularly for value-added textiles.