The optimal export tax for a primary commodity in a vertical market

2020 ◽  
Vol 51 (6) ◽  
pp. 909-922
Author(s):  
Ying Lin ◽  
Henry W. Kinnucan
Keyword(s):  
Primary Commodity ◽  
Export Tax ◽  
Vertical Market

The effect of export tax rebates on product quality: evidence from China's agricultural product processing industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yue Liang ◽  
Jingqi Dang ◽  
Shuai Chen
Keyword(s):  
Quality Improvement ◽  
Product Quality ◽  
Policy Implications ◽  
Medium Size ◽  
Agricultural Product ◽  
Firm Innovation ◽  
Processing Industry ◽  
Content Type ◽  
Export Tax

PurposeThis study aims to establish the linkage among export tax rebate (ETR), firm innovation and product quality of Chinese agricultural product processing industry (APPI), so that more targeted policy implications can be discussed.Design/methodology/approachUsing highly disaggregated firm-product-destination-level data through 2001 to 2013 of Chinese APPI, this study employs a two-way fixed effects specification to establish the linkage between ETR and product quality, while the mediational model is adopted to examine potential mechanisms.FindingsBaseline estimates show that a 1% increase in ETR rate leads to a significant increase in the product quality of APPI by 0.12% on the whole. However, there is a nonlinear, inverse-U shaped relationship between ETR and product quality, and the optimal inflection point occurs when ERT rate equals 0.15. Mechanism analyses show that firm innovation is an important impact channel, which explains 9.8% of quality improvement induced by raising ETR. Further heterogeneous analyses reveal both the total effects of ETR on product quality and the mediation effects of innovation are dominated by young SMEs (small and medium-size enterprises).Practical implicationsAuthorities can promote the innovation and then product quality improvement of young SMEs by moderately increasing ETR rate. To ensure ETR more effective in improving quality, it is necessary for the government to encourage innovation. Authorities can reduce the risk of innovation failure for low-tech firms by increasing R&D subsidies, while ensuring innovation returns for high-tech firms in combination with stronger intellectual property protection.Originality/valueFirst, this is one of the earlier studies to explore the relationship between ETR and product quality specifically for Chinese APPI. Second, we show firm innovation as an important mediator so that policies aim at raising ETR rates are eventually beneficial to product quality. Third, using the highly disaggregated data, we allow ETR rate to vary across different products, which is an improvement in the accuracy of previous literature. Finally, our research provides additional empirical evidence for revealing the micro-mechanism of ETR affecting firm behaviors.

Bucking the Trend: A Look at Zyme Solutions' Non-linear Business Model for IT Services from India

2011 ◽  
Vol 15 (01) ◽  
pp. 37-62 ◽  
Author(s):  
D.V.R. Seshadri
Keyword(s):  
Business Model ◽  
Service Provider ◽  
Business Models ◽  
Linear Growth ◽  
High Tech ◽  
Data Service ◽  
It Services ◽  
Software Companies ◽  
Non Linear ◽  
Vertical Market

The case describes XGen Technologies (name disguised), an India-based IT Enabled Services (ITES) company having to grapple with the issues of linear growth. The company's headcount had touched a whopping 40,000 and managing such a large setup was becoming a severe challenge, putting immense pressure on Partha Sen, the CEO, to adopt an innovative business model to sustain historical growth rates of revenue and profitability. This situation was similar to what most Indian ITES companies faced: they had been clocking impressive growth, yet there were concerns about the future. The case then describes some of the strategies that software companies have been adopting in order to achieve greater non-linearity in their business. In particular, the case concentrates on Zyme Solutions, Inc., a fully outsourced hosted data service provider to the high-tech vertical market, which has built as a non-linear business from the ground up, without the legacy of the linear business models to contend with. Students are put in the place of Partha Sen, having to decide on an approach that established companies like XGen could adopt to transit to a non-linear model.

scholarly journals PAJAK EKSPOR, PERTUMBUHAN EKONOMI, DAN PENDAPATAN: KASUS AGROINDUSTRI DI INDONESIA

KINERJA ◽  
2017 ◽  
Vol 18 (2) ◽  
pp. 180
Author(s):  
Lestari Agusalim
Keyword(s):  
Household Income ◽  
Tax Policy ◽  
Cge Model ◽  
Real Gdp ◽  
Export Tax ◽  
Industry Output ◽  
Agricultural Household ◽  
Negative Effect ◽  
Household Incomes ◽  
Positive Effect

This research aims to analyze whether export tax policy and the policy of productivity increment of agro industry based upstream and downstream sectors can increase real GDP growth, agro industry output, andhousehold income. The model used in this research is a comparative static Computable General Equilibrium (CGE) model. The data used are from the 2008 Input-Output Table, the 2008 System Accounting Matrix (SAM)Table, and other relevant suporting sources. The three simulations conducted in this research are: (1) export tax policy on agro industry’s upstream sector (SIM1), (2) export tax and productivity increment policies on agro industry’s upstream sector (SIM2), and (3) export tax and productivity increment policies on agro industry’s upstream and downstream sectors (SIM3). The three simulations will be adjusted to the government’s policies to suport agro industries’ downstream. SIM1 has negative effect on real GDP and only increases agro industry output in certain sectors only. SIM2 and SIM3 have positive effect on real GDP and increases agro industryoutput. All simulations increase non-agricultural household incomes, and decrease agricultural household incomes.Keywords: agroindustry, export tax, real GDP, household income

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