How to assess the significance of export incentives: an application to Turkey

Abstract

This paper analyzes the changes in the structure of export incentives in Turkey from 1983 to 1990. It shows that during the 1980s the level of the economy-wide subsidy rates and that of the inter-industry dispersion of incentives have substantially been lowered. Using the estimates of the effective subsidy figures it is shown that the Turkish export- and import-competing industries have benefited from the export incentives more than the other sectors. Finally, it is emphasized that the system of export incentives is too complicated and is therefore blurring the transparency of the incentive system.