IDEAS home Printed from https://ideas.repec.org/a/ukm/jlekon/v54y2020i2p29-40.html
   My bibliography  Save this article

The Effects of Tax and Promotion on Rubber Medical Devices Export

Author

Listed:
  • Lee, Siu Ming

    (Economics Section, School of Distance Education, Universiti Sains Malaysia 11700 Penang, MALAYSIA.)

  • Adam, Radziah

    (Economics Section, School of Distance Education, Universiti Sains Malaysia 11700 Penang, MALAYSIA.)

  • Tuan Lonik, Ku’ Azam

    (Economics Section, School of Distance Education, Universiti Sains Malaysia 11700 Penang, MALAYSIA.)

Abstract

This study examines the effects of cess and export promotion on rubber medical devices export by employing a modified gravity model. The export promotion activities include overseas office, trade missions and trade fairs. Using a balanced panel data of Malaysia, the findings show that cess reduces rubber medical devices export indicating its potential of limiting this export. The results further show that overseas office establishment increases rubber medical devices export growth. These two sets of policies, namely cess and export promotion activities are indeed intertwined and are difficult to be considered separately. In increasing global market share for rubber medical devices, Malaysia continues its export promotion efforts and cess is currently the sole funding.

Suggested Citation

  • Lee, Siu Ming & Adam, Radziah & Tuan Lonik, Ku’ Azam, 2020. "The Effects of Tax and Promotion on Rubber Medical Devices Export," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 29-40.
    • Handle: RePEc:ukm:jlekon:v:54:y:2020:i:2:p:29-40
    DOI: http://dx.doi.org/10.17576/JEM-2020-5402-3
    as

    Download full text from publisher

    File URL: http://www.ukm.my/jem/wp-content/uploads/2021/05/jeko_542-3.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.17576/JEM-2020-5402-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Keith Head & John Ries, 2010. "Do trade missions increase trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 754-775, August.
    2. Robert Repetto, 1972. "Optimal Export Taxes in the Short and Long Run, and an Application to Pakistan's Jute Export Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(3), pages 396-406.
    3. Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
    4. Kichun Kang, 2011. "Overseas Network Of Export Promotion Agency And Export Performance: The Korean Case," Contemporary Economic Policy, Western Economic Association International, vol. 29(2), pages 274-283, April.
    5. Harry M. Kaiser & Donald J. Liu & Ted Consignado, 2003. "An economic analysis of California raisin export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 189-201.
    6. Tinatin Akhvlediani & Katarzyna Sledziewska, 2017. "Implications of the European integration: revisiting the hypothesis of ‘hub-and-spokes’ model," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 17(1), pages 45-56.
    7. Gert-Jan M. Linders & Henri L.F. de Groot, 2006. "Estimation of the Gravity Equation in the Presence of Zero Flows," Tinbergen Institute Discussion Papers 06-072/3, Tinbergen Institute.
    8. G.J.M. Linders, 2006. "Estimation of the Gravity Equation of Bilateral Trade in the Presence of Zero Flows," ERSA conference papers ersa06p746, European Regional Science Association.
    9. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, January.
    10. Bouët, Antoine & Laborde Debucquet, David & Dienesch, Elisa & Elliot, Kimberly, 2010. "The costs and benefits of duty-free, quota-free market access for poor countries," IFPRI discussion papers 990, International Food Policy Research Institute (IFPRI).
    11. Onunkwo, Izuchukwu M. & Epperson, James E., 2000. "Export Demand For U.S. Walnuts: Impacts Of U.S. Export Promotion Programs," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(3), pages 1-7, November.
    12. Narayan, Seema & Nguyen, Tri Tung, 2016. "Does the trade gravity model depend on trading partners? Some evidence from Vietnam and her 54 trading partners," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 220-237.
    13. Antoine Bouët & Carmen Estrades & David Laborde, 2014. "Differential Export Taxes along the Oilseeds Value Chain: A Partial Equilibrium Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 924-938.
    14. I.M. Onunkwo & J.E. Epperson, 2000. "Export demand for U.S. pecans: Impacts of U.S. export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 253-265.
    15. Hayakawa, Kazunobu & Kimura, Fukunari, 2014. "How do free trade agreements reduce tariff rates and non-tariff barriers?," IDE Discussion Papers 446, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    16. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2010. "Export promotion agencies: Do they work?," Journal of Development Economics, Elsevier, vol. 91(2), pages 257-265, March.
    17. Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
    18. Barnes, Ryan & Bosworth, Ryan, 2015. "LNG is linking regional natural gas markets: Evidence from the gravity model," Energy Economics, Elsevier, vol. 47(C), pages 11-17.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    2. Freixanet, Joan, 2022. "Export promotion programs: A system-based systematic review and agenda for future research," Journal of World Business, Elsevier, vol. 57(4).
    3. Mireille NTSAMA ETOUNDI, 2014. "Impact de la rente pétrolière sur la demande des pays frontaliers du Cameroun," Working Papers 201417, CERDI.
    4. Hoekman, Bernard & Wilson, John, 2010. "Aid for Trade: An Action Agenda Looking Forward," World Bank - Economic Premise, The World Bank, issue 25, pages 1-4, August.
    5. Bouet, Antoine & Laborde, David, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-22, August.
    6. Johannes Van Biesebroeck & Emily Yu & Shenjie Chen, 2015. "The impact of trade promotion services on Canadian exporter performance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(4), pages 1481-1512, November.
    7. Filippo Vergara Caffarelli & Giovanni Veronese, 2013. "Italy�s system for supporting internationalization," Questioni di Economia e Finanza (Occasional Papers) 196, Bank of Italy, Economic Research and International Relations Area.
    8. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 653-702.
    9. Mireille S. Ntsama Etoundi, 2015. "Impact de la rente pétrolière sur la demande des pays frontaliers du Cameroun," CERDI Working papers halshs-01027500, HAL.
    10. Pimbucha Rusmevichientong & Harry M. Kaiser, 2009. "Measuring the effectiveness of U.S. rice export promotion programs," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 215-230.
    11. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
    12. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano & Francisco Requena-Silvente, 2015. "Regional export promotion offices and trade margins," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 145-167, February.
    13. Ebadullah Akbari & Samad Aali & Yaghoub Alavi Matin & Morteza Mahmoudzadeh, 2021. "Evaluating Export Incentive Programs' Performance of Trade Promotion Organization of Iran on Export Performance: The Mediating Role of Exporting Companies' Marketing Implementation Capabilities and th," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(4), pages 3-23.
    14. Maria Inês Veloso Ferreira & Aurora A.C. Teixeira, 2011. "Organizational Characteristics and Performance of Export Promotion Agencies: Portugal and Ireland compared," FEP Working Papers 424, Universidade do Porto, Faculdade de Economia do Porto.
    15. Nogueira, Lia & Chouinard, Hayley H., 2006. "The Effects of Reducing Sanitary and Phytosanitary (SPS) Barriers to Trade on the Washington State Apple Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21433, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Sèna Kimm Gnangnon & Shishir Priyadarshi, 2016. "Export Product Diversification, Services Production and Exports in Least Developed Countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-36, October.
    17. Selwyn J. V. Moons & Peter A. G. Bergeijk, 2017. "Does Economic Diplomacy Work? A Meta-analysis of Its Impact on Trade and Investment," The World Economy, Wiley Blackwell, vol. 40(2), pages 336-368, February.
    18. Douillet, Mathilde, 2012. "Trade and agricultural policies in Malawi: Not all policy reform is equally good for the poor," Conference papers 332277, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Mykhaylo Kunychka & Leonid Raneta & Diana Steblak, 2023. "Economic Diplomacy And Its Relevance In Countries With Different Income Levels: A Perspective For Transition Economies," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 9(2).
    20. Stjepan Srhoj & Vanja Vitezic & Joachim Wagner, 2020. "Export boosting policies and firm behaviour: Review of empirical evidence around the world," Working Paper Series in Economics 395, University of Lüneburg, Institute of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ukm:jlekon:v:54:y:2020:i:2:p:29-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Asri Abd Ghani (email available below). General contact details of provider: https://edirc.repec.org/data/feukmmy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.