The impact of the duty drawback scheme on exports: The case of Zambia
This study investigated the impact of the duty drawback scheme on exports in Zambia using monthly data covering the period M1 2008 to M12 2016. The Autoregressive distributed lagged (ARDL) bounds approach was used to test for cointegration. The Bound tests suggested that there was evidence of a long run relationship between duty drawback and exports. The short run and long run results revealed that duty drawback did not contribute to export promotion in Zambia. This could be attributed to the rent seeking behavior of the exporters and the inefficiencies in the administration of the duty drawback scheme.