Open AccessCommodity Exports, Net Exchange Earnings and Investment Criteria
Author(s) -
Nurul Islam
Publication year - 1968
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/v8i4pp.582-605
Subject(s) - earnings , export performance , incentive , exchange rate , unit (ring theory) , promotion (chess) , foreign direct investment , business , investment (military) , economics , commodity , international economics , production (economics) , monetary economics , international trade , finance , market economy , macroeconomics , mathematics education , mathematics , politics , political science , law
Pakistan has experienced in the last decade a significant rateof growth of exports, especially of the manufactured exports. Themanufactured exports have grown at an annual compound rate of 15 percent during the period 1960-67. This significant rate of growth ofexports has been associated with a large number of export-promotionmeasures which have ranged from a wide variety of fiscal concessions tosuch export-incentive schemes as the export bonus and export performancelicensing as well as the fixation of compulsory export quotas for theindividual manufactured exports. The question has been raised from timeto time as to the efficacy of the export-promotion measures in terms ofthe net foreign-exchange earnings, denned as the actual increase inexport earnings from a unit of export minus the direct and indirectrequirements of imports necessary for the production of the unit ofexport. Since one of the important criteria for the determination of theinvestment priorities in the field of industry in Pakistan has been theforeign-exchange saving or earning capacity of a particular industrialproject [9, p.51], it is important to quantify the contributions to thenet foreign exchange earnings made by the exports of the differentmanufactured goods. Moreover, it is possible to judge how the existingstructure of the export incentives is related to the netexchange-earning capacity of the different industries.