Publication:
The Impact of Export Tax Incentives on Export Performance : Evidence from the Automotive Sector in South Africa

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dc.contributor.authorMadani, Dorsati H.
dc.contributor.authorMas-Guix, Natalia
dc.date.accessioned2012-03-19T18:00:51Z
dc.date.available2012-03-19T18:00:51Z
dc.date.issued2011-03-01
dc.description.abstractThe original goal of the Motor Industry Development Program was to help the automotive industry in South Africa adjust to trade liberalization and become internationally competitive. In simple terms, it consists of an import/export complementation arrangement, whereby the local value-added of components or built-up vehicles exported earns credits that can be used to rebate import duties on components and vehicles. This study provides a first attempt at a quantitative analysis of the Motor Industry Development Program using the difference-in-difference methodology, in order to assess to what extent the program was effective in improving South Africa's automotive export performance during 1996-2006. The authors take a two-tier approach. First, they perform a comparative study using different manufacturing sectors within South Africa; second, they apply this methodology to analyze South Africa and a number of comparator countries that are automotive producers and exporters. The analysis finds that the impact of the program on automotive exports in South Africa is positive and significant. In particular, (i) the largest response to the program in terms of improved manufacturing exports occurs with a delay after the adoption of the law, suggesting that exports need time to fully react to the incentives; and (ii) in turn, the effectiveness of the tax incentives fades in time, reaffirming the common belief that tax incentives may affect some business decisions particularly in the short run, but they are not a primary consideration for investors in the long run.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110309100435
dc.identifier.doi10.1596/1813-9450-5585
dc.identifier.urihttps://hdl.handle.net/10986/3352
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5585
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectAGRICULTURE
dc.subjectAUTO INDUSTRY
dc.subjectAUTOMOBILE
dc.subjectAUTOMOBILE INDUSTRIES
dc.subjectAUTOMOBILE INDUSTRY
dc.subjectAUTOMOTIVE INDUSTRY
dc.subjectAUTOMOTIVE SECTOR
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBANK POLICY
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL INVESTMENTS
dc.subjectCAR
dc.subjectCAR PRICES
dc.subjectCARS
dc.subjectCENTRAL BANK
dc.subjectCHECKS
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCOMPETITIVENESS
dc.subjectCOMPETITIVENESS OF FIRMS
dc.subjectCOMPLIANCE COSTS
dc.subjectCONSUMER SURPLUS
dc.subjectCONSUMERS
dc.subjectCORPORATE INCOME TAX
dc.subjectCOST-BENEFIT ANALYSIS
dc.subjectCOUNTERVAILING MEASURES
dc.subjectCURRENCY
dc.subjectCURRENCY UNION
dc.subjectDEFLATORS
dc.subjectDEREGULATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISCOURAGED WORKERS
dc.subjectDOMESTIC INDUSTRIES
dc.subjectDOMESTIC MARKET
dc.subjectDRIVING
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC LOSS
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC RELATIONS
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMIC THEORY
dc.subjectECONOMIES OF SCALE
dc.subjectEMERGING ECONOMIES
dc.subjectEQUIPMENTS
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXOGENOUS SHOCKS
dc.subjectEXPENDITURE
dc.subjectEXPORT
dc.subjectEXPORT GROWTH
dc.subjectEXPORT INCENTIVES
dc.subjectEXPORT INTENSITY
dc.subjectEXPORT MARKET
dc.subjectEXPORT MARKETS
dc.subjectEXPORT PERFORMANCE
dc.subjectEXPORT PRICE
dc.subjectEXPORT PROCESSING
dc.subjectEXPORT PROCESSING ZONES
dc.subjectEXPORT SUBSIDIES
dc.subjectEXPORT SUPPLY
dc.subjectEXPORT VALUE
dc.subjectEXPORT VOLUMES
dc.subjectEXPORTER
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectFINANCIAL CRISIS
dc.subjectFOREIGN COMPANIES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN TRADE
dc.subjectFREE ACCESS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENERALIZED SYSTEM OF PREFERENCES
dc.subjectGLOBAL BUSINESS
dc.subjectGLOBAL CAPITAL
dc.subjectGLOBAL COMPETITION
dc.subjectGLOBAL INTEGRATION
dc.subjectGLOBAL MARKETS
dc.subjectGLOBAL TRADE
dc.subjectGOVERNMENT SUPPORT
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectHOST GOVERNMENT
dc.subjectHOST GOVERNMENTS
dc.subjectHUMAN CAPITAL
dc.subjectIMPACT OF TRADE
dc.subjectIMPACT OF TRADE LIBERALIZATION
dc.subjectIMPORT DUTIES
dc.subjectIMPORT DUTY
dc.subjectIMPORT PENETRATION
dc.subjectIMPORT TARIFFS
dc.subjectINCENTIVE REGIMES
dc.subjectINCOME
dc.subjectINCOME LEVEL
dc.subjectINCOME TAX
dc.subjectINDUSTRIAL POLICIES
dc.subjectINDUSTRIAL POLICY
dc.subjectINDUSTRIALIZATION
dc.subjectINFLATION
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINJURY
dc.subjectINTERMEDIATE INPUTS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL COMPETITIVENESS
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT INCENTIVES
dc.subjectKNOWLEDGE SPILLOVERS
dc.subjectLOSS OF REVENUES
dc.subjectMACROECONOMIC DYNAMICS
dc.subjectMACROECONOMIC FACTORS
dc.subjectMACROECONOMIC POLICY
dc.subjectMARKET STRUCTURE
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectMIDDLE INCOME COUNTRY
dc.subjectMOBILITY
dc.subjectMOTOR VEHICLE
dc.subjectMOTOR VEHICLES
dc.subjectMULTINATIONAL CORPORATIONS
dc.subjectNATIONAL TREASURY
dc.subjectNATURAL RESOURCES
dc.subjectNET EXPORTS
dc.subjectNET INFLOWS
dc.subjectOPEN MARKET
dc.subjectOPENNESS
dc.subjectPATTERN OF TRADE
dc.subjectPATTERNS OF TRADE
dc.subjectPOLITICAL STABILITY
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPOTENTIAL INVESTORS
dc.subjectPRICE FLUCTUATIONS
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTIVITY GROWTH
dc.subjectRAIL
dc.subjectRAILWAYS
dc.subjectREAL EXCHANGE RATES
dc.subjectREAL GDP
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectREAL INTEREST RATES
dc.subjectREGRESSION ANALYSIS
dc.subjectREGULATORY FRAMEWORKS
dc.subjectRENTS
dc.subjectRETURNS
dc.subjectROADS
dc.subjectSTRUCTURAL CHANGE
dc.subjectTARIFF PROTECTION
dc.subjectTARIFF RATES
dc.subjectTARIFF REDUCTION
dc.subjectTARIFF REDUCTIONS
dc.subjectTAX
dc.subjectTAX BENEFITS
dc.subjectTAX INCENTIVES
dc.subjectTAX RATE
dc.subjectTAX REGIMES
dc.subjectTAXPAYERS
dc.subjectTERMS OF TRADE
dc.subjectTRADE BALANCE
dc.subjectTRADE BARRIERS
dc.subjectTRADE FLOWS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE PERFORMANCE
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE PREFERENCES
dc.subjectTRADE REGIME
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPORT
dc.subjectTRANSPORT EQUIPMENT
dc.subjectTRANSPORT INFRASTRUCTURE
dc.subjectTRANSPORTATION
dc.subjectTRANSPORTATION EQUIPMENT
dc.subjectTREASURY
dc.subjectTRUE
dc.subjectTURNOVER
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectUNEMPLOYMENT RATES
dc.subjectUNSKILLED LABOR
dc.subjectVALUE ADDED
dc.subjectVEHICLE
dc.subjectVEHICLES
dc.subjectWAGES
dc.subjectWHOLESALE PRICE INDEX
dc.subjectWORLD MARKETS
dc.subjectWORLD PRICES
dc.subjectWORLD TRADE
dc.subjectWTO
dc.titleThe Impact of Export Tax Incentives on Export Performance : Evidence from the Automotive Sector in South Africaen
dspace.entity.typePublication
okr.crossref.titleThe impact of export tax incentives on export performance: Evidence from the automotive sector in South Africa
okr.date.disclosure2011-03-01
okr.date.doiregistration2025-04-10T11:31:56.823201Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110309100435
okr.globalpracticeTransport and ICT
okr.guid913141468114550935
okr.identifier.doi10.1596/1813-9450-5585
okr.identifier.externaldocumentum000158349_20110309100435
okr.identifier.internaldocumentum13883965
okr.identifier.reportWPS5585
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/03/09/000158349_20110309100435/Rendered/PDF/WPS5585.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica
okr.region.geographicalSub-Saharan Africa
okr.region.geographicalSouthern Africa
okr.region.geographicalSouth Africa
okr.topicTransport
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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