Open AccessSome Comments on the Export Bonus, Export Promotion and Investment Criteria
Author(s) -
Ronald Soligo,
Judith M. Stern
Publication year - 1966
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v6i1pp.38-56
Subject(s) - investment (military) , promotion (chess) , incentive , business , export performance , plan (archaeology) , international economics , economics , international trade , market economy , archaeology , politics , political science , law , history
One of the principal elements in the Third Five Year Planstrategy is to shift > the pattern of investment in favour ofexport-oriented industries [7]. According to the Plan targets, exportsare to increase at a rate of 9.5 per cent per annum over the period1964/65 to 1969/70, a rate of growth which exceeds the target rate ofgrowth for G.N.P., estimated at 6.5 per cent per annum. Furthermore, theincrease in exports is expected mainly in manufactured goods and innon-traditional items such as rice and fish [7]. Put in other terms, thePlan targets propose to divert to exports 10 per cent of additionalmanufacturing output produced during the Third Plan period. This targetcontrasts sharply with the actual ex¬perience of the Second Five YearPlan, when only 3 per cent of the additional output of the manufacturingsector was exported. Numerous policies have been used to stimulateexports. Some of these are tax incentives and export performancelicensing which entitles certain export industries to additional importlicences on the basis of their export performance. The key instrument inthe export promotion strategy however, and the one which has receivedthe most attention from economists, is the export bonus scheme. Thescheme, first introduced in 1959 and scheduled to run till the end ofthe Second Plan period, has now been extended to cover the Third Plan aswell.