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Industrial Policy under Constraints: Evidence from Pakistan’s Export Subsidy Schemes

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dc.contributor.authorLovo, Stefania
dc.contributor.authorVarela, Gonzalo J.
dc.date.accessioned2025-06-05T18:18:04Z
dc.date.available2025-06-05T18:18:04Z
dc.date.issued2025-06-05
dc.description.abstractThis paper investigates the impact of an export promotion policy consisting of ad-valorem subsidies for a set of targeted products, on the performance of Pakistani exports in the textile sector. The findings show that the policy had a small overall impact on exports, while it induced substantial reallocation of exports across products. The policy induced an increase in exports of traditional products, mostly garments, which were eligible for the highest rebate rates, at the expense of non-eligible or lower-rated products. The paper presents suggestive evidence indicating that the observed effects are partially attributed to shifts in the composition of exporters, through exits and entries alongside capacity constraints. Finally, the evidence shows that the scheme induced strategic misreporting at the border, which contributed marginally to the overall effects.en
dc.identifierhttp://documents.worldbank.org/curated/en/099247006032525653
dc.identifier.urihttps://hdl.handle.net/10986/43299
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11136
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectEXPORT PROMOTION
dc.subjectEXPORT SUBSIDIES
dc.subjectINDUSTRIAL POLICY
dc.subjectPAKISTAN
dc.titleIndustrial Policy under Constraintsen
dc.title.subtitleEvidence from Pakistan’s Export Subsidy Schemesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-06-05
okr.date.lastmodified2025-06-05T17:05:44Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099247006032525653
okr.guid099247006032525653
okr.identifier.docmidIDU-3ce59b00-c710-4140-b589-f6de5a602c48
okr.identifier.doi10.1596/1813-9450-11136
okr.identifier.externaldocumentum40019250
okr.identifier.internaldocumentum40019250
okr.identifier.reportWPS11136
okr.import.id7573
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099247006032525653/pdf/IDU-3ce59b00-c710-4140-b589-f6de5a602c48.pdfen
okr.region.administrativeSouth Asia
okr.region.countryPakistan
okr.topicInternational Economics and Trade::Trade Policy
okr.topicMacroeconomics and Economic Growth::Economic Development
okr.unitEEADR - EFI-EAP-Regional Director
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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