This paper investigates the impact of an export promotion policy consisting of ad-valorem subsidies for a set of targeted products, on the performance of Pakistani exports in the textile sector. The findings show that the policy had a small overall impact on exports, while it induced substantial reallocation of exports across products. The policy induced an increase in exports of traditional products, mostly garments, which were eligible for the highest rebate rates, at the expense of non-eligible or lower-rated products. The paper presents suggestive evidence indicating that the observed effects are partially attributed to shifts in the composition of exporters, through exits and entries alongside capacity constraints. Finally, the evidence shows that the scheme induced strategic misreporting at the border, which contributed marginally to the overall effects.
Repository name | URI |
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Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows 11 Enterprise
• Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
• Memory available: 15.7 GB
• Software version: Stata version 18 MP
~10 minutes run time
To reproduce the results, a new user should follow these steps:
.do
file to match your local setup. Output
folder, so external users can review and compare them against the published paper.Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.
Author | Affiliation | |
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Gonzalo Varela | World Bank | gvarela@worldbank.org |
Stefania Lovo | University of Reading | s.lovo@reading.ac.uk |
2025-06-25
Location | Code |
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Pakistan | PAK |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
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Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
Name | Affiliation | |
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Gonzalo Varela | World Bank | gvarela@worldbank.org |
Reproducibility WBG | World Bank | reproducibility@worldbank.org |
Name | Abbreviation | Affiliation | Role |
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Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
2025-06-25
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