The paper makes an attempt to assess the effects of economic incentives on the responsiveness of exports on the basis of a brief review of structure of incentives and export performance. The Study relates to the period 1976/77 to 1991/92 covering sixteen years for total exports and 1981/82 to 1991/92 for commodity sector due to non-availability of certain information required for the analysis. These incentives may be broadly categorised under monetary ad fiscal policy instruments. The paper demonstrates that foreign income is an important explanatory variable for export performance. for total exports, all the economic incentives such as exchange rate, relative price, export performance benefit, rate of interest, foreign income, custom duty, sales tax, excise taxes and refunds have the expected signs and are significant. The results differ significantly for different commodities. While interest rate is negatively associated with exports of raw jute, readymade garments, handicrafts and paper products. Fiscal instruments seem to be important for engineering products, paper, newsprint and paper products to influence exports. Exchange rate depreciation have a positive effect on exports of most commodities Relative price does have a role in jute goods’ exports.