The impact of tax incentives on the growth of value-added agricultural exports - Evidence from Zimbabwe
Scindeks Assistant SCIndeks Assistant: Journal Management System
PDF

How to Cite

Abinal, F., & Mazuruse, P. (2024). The impact of tax incentives on the growth of value-added agricultural exports - Evidence from Zimbabwe. Industrija, 52(1), 23-45. https://doi.org/10.5937/industrija52-49174

Abstract

This paper empirically examines the impact of export tax incentives on value-added agricultural export performance in Zimbabwe using historical annual time-series data from 1980-2021. The study uses unit root tests, cointegration analysis, and the Error Correction Model in the analysis. Using an augmented Cobb-Douglass production function, the study aims at determining wether export tax incentives, real effective exchange rate and value-added agricultural exports are cointegrated.. Export tax incentives and real effective exchange rate were found to have a positive and statistically significant effect in the long run on the country’s growth of value-added agricultural exports. From the results, policymakers are encouraged to deepen and broaden export tax incentives specifically targeted at value-addition of agricultural products as part of the country’s efforts in reforming its trade systemto  improve the welfare of producers, workers and generate foreign currency for the country.

Keywords

Value-Added Agricultural Exports; Tax Incentives; Cointegration; Unit Root Tests; Zimbabwe
DOI: 10.5937/industrija52-49174