“In its analysis of export incentives, this paper suggests that such incentives can be direct and explicit when they take the form of autonomous, complementary and / or compensatory measures which are specifically targeted at promoting exporting activities; and that they may also be indirect and implicit – and often largely unintended – when they are derived as by-products of policies targeted at other objectives. Hence,
a comprehensive analysis of an economy’s incentives for exporting should cover both of these two broad categories so that the extent to which they reinforce or cancel each other out, partially or fully, with respect to different export product groups can be examined. The paper identifies three broad sources through which implicit or indirect incentives for exporting activities can be generated in an economy. These include the trade, investment and exchange rate regimes.”
