IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/362947.html
   My bibliography  Save this article

Aggregate Ores and Metals Trade Mis-invoicing and Industrial Development in Zambia

Author

Listed:
  • Habeenzu, Lennon Jambo

Abstract

The industrial sector development is crucial for achieving sustainable development. In Zambia, efforts to promote industrial development can be traced as far back as the 1960s. However, the increasing volume of illicit financial flow evidenced in trade mis-invoicing deprives the country of the needed resources to spur industrial development. This study, therefore, contributes to the literature by analyzing the effect of all ores and metals trade mis-invoicing on industrial development in Zambia. The study employed the vector error correction model (VECM) and Johansen cointegration test on unit root and cointegrated time series from 1992 to 2023. The study findings show that trade mis-invoicing in aggregate ores and metals has a disastrous long-term effect on industrial development in Zambia. Therefore, policymakers and implementors should curb trade mis-invoicing among mining companies, improve the regulatory quality and ensure a stable exchange rate to foster industrial development.

Suggested Citation

  • Habeenzu, Lennon Jambo, 2025. "Aggregate Ores and Metals Trade Mis-invoicing and Industrial Development in Zambia," African Journal of Economic Review, African Journal of Economic Review, vol. 13(2).
    • Handle: RePEc:ags:afjecr:362947
    DOI: 10.22004/ag.econ.362947
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/362947/files/ajol-file-journals_540_articles_297011_6839845917ffb.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.362947?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jean-Louis Combes & Alexandru Minea & Pegdéwendé Nestor Sawadogo, 2019. "Assessing the effects of combating illicit financial flows on domestic tax revenue mobilization in developing countries," Working Papers halshs-02019073, HAL.
    2. Lemi, Adugna, 2019. "Catch Me If You Can: Trade Mis-invoicing and Capital Flight in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 28(01), April.
    3. Mahjus Ekananda, 2018. "Misinvoicing Analysis in ASEAN-China Free Trade Aggrement (ACFTA)," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 187-205.
    4. Amah Kalu Ogbonnaya & Okezie Stella Ogechuckwu, 2017. "Impact of Illicit Financial Flow on Economic Growth and Development: Evidence from Nigeria," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 3(4), pages 19-33, October.
    5. Chansa, Frank & Mubanga, Ngao & Mudenda, Dale & Ndulo, Manenga, 2019. "Industrial Growth and Policy in Zambia: Lessons from South Korea," African Journal of Economic Review, African Journal of Economic Review, vol. 7(2), August.
    6. Andreas Buehn & Stefan Eichler, 2011. "Trade Misinvoicing: The Dark Side of World Trade," The World Economy, Wiley Blackwell, vol. 34(8), pages 1263-1287, August.
    7. Tehseen Ahmed Qureshi & Zafar Mahmood, 2016. "The Magnitude of Trade Misinvoicing and Resulting Revenue Loss in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(2), pages 1-30, July-Dec.
    8. Lemi, Adugna, 2019. "Catch Me If You Can: Trade Mis-invoicing and Capital Flight in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 28(02), October.
    9. A. Yasemin Yalta, 2010. "Effect of Capital Flight on Investment: Evidence from Emerging Markets," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(6), pages 40-54, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arcade Ndoricimpa & Eduardo Araral, 2024. "Determinants of illicit capital movement in China‐Africa trade: Evidence of trade misinvoicing," African Development Review, African Development Bank, vol. 36(2), pages 334-349, June.
    2. Usman Qadir, 2020. "Analysing the National Tariff Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(1), pages 143-149.
    3. Temesgen Worku & Juan P. Mendoza & Jacco L. Wielhouwer, 2016. "Tariff evasion in sub-Saharan Africa: the influence of corruption in importing and exporting countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 741-761, August.
    4. repec:dgr:rugsom:14031-eef is not listed on IDEAS
    5. Emmanuel Ekow Asmah & Francis Kwaw Andoh & Edem Titriku, 2020. "Trade misinvoicing effects on tax revenue in sub‐Saharan Africa: The role of tax holidays and regulatory quality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 649-672, December.
    6. Carton, Christine & Slim, Sadri, 2018. "Trade misinvoicing in OECD countries: what can we learn from bilateral trade intensity indices?," MPRA Paper 85703, University Library of Munich, Germany.
    7. Yalta, A. Yasemin & Yalta, A. Talha, 2012. "Does financial liberalization decrease capital flight? A panel causality analysis," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 92-100.
    8. Pide, 2020. "Growth Inclusive Tax Policy: A Reform Proposal PIDE Report," PIDE Research Report 2020:5, Pakistan Institute of Development Economics.
    9. Adewale Rafiu Aregbeshola & Ibrahim Ayoade Adekunle, 2025. "Episode of Foreign Direct Investment Reversal—The Role of Macroeconomic Fundamentals in Sub-Saharan Africa," Journal of Industry, Competition and Trade, Springer, vol. 25(1), pages 1-25, December.
    10. Daniel Dujava & Maria Siranova, 2017. "Getting the Measures of Trade Misinvoicing Right: Bilateral Panel Data Approach," Working Papers wp98, Institute of Economic Research, Slovak Academy of Sciences, revised 20 Dec 2017.
    11. James Nyirenda & Harriet Malabo, 2024. "Mineral and bioresource exploitation for transformation and sustainability of the chemical industry in Zambia," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    12. Iwona Markowicz & Paweł Baran, 2022. "Duration of Trade Relationships of Polish Enterprises on the Intra-Community Market: The Case of Vehicles and Automotive Parts Trade," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    13. Ndoricimpa, Arcade, 2024. "The ugly side of the Africa-UAE (United Arab Emirates) gold trade: Gold export misreporting and smuggling," Resources Policy, Elsevier, vol. 91(C).
    14. Nourat Al Hayat Guigma, 2025. "Tackling tax base erosion in developing countries: Does information exchange initiative make a difference?," Economics of Governance, Springer, vol. 26(3), pages 401-437, September.
    15. Sven Steinkamp & Frank Westermann, 2022. "Development aid and illicit capital flight: Evidence from Nepal," The World Economy, Wiley Blackwell, vol. 45(7), pages 2305-2336, July.
    16. Jamil Nasir, 2020. "The Tariff Tripod of Pakistan: Protection, Export Promotion, and Revenue Generation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 517-551.
    17. Abdoul-Akim Wandaogo & Fayçal Sawadogo & Jesse Lastunen, 2022. "Does the adoption of peer-to-government mobile payments improve tax revenue mobilization in developing countries?," WIDER Working Paper Series wp-2022-18, World Institute for Development Economic Research (UNU-WIDER).
    18. Mahjus Ekananda, 2018. "Misinvoicing Analysis in ASEAN-China Free Trade Aggrement (ACFTA)," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 187-205.
    19. Mohammad Farhad & Michael Jetter & Abu Siddique & Andrew Williams, 2018. "Misreported Trade," CESifo Working Paper Series 7150, CESifo.
    20. Si, Deng-Kui & Li, Xiao-Lin & Huang, Shoujun, 2021. "Financial deregulation and operational risks of energy enterprise: The shock of liberalization of bank lending rate in China," Energy Economics, Elsevier, vol. 93(C).
    21. Lemi, Adugna, 2019. "Catch Me If You Can: Trade Mis-invoicing and Capital Flight in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 28(01), April.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:362947. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.