IDEAS home Printed from
   My bibliography  Save this article

Duty drawback and export promotion in China


  • Jai S. Mah

    () (Ewha Womans University, South Korea)


The Chinese government has actively tried to promote export. Her export promotion measures have included duty drawbacks, which are expected to lower the cost of imported inputs and to increase the exporters' competitiveness. This paper examines the effectiveness of the duty drawback system in the promotion of export in China considering export supply and export demand. The unit root test shows that all concerned variables are integrated of order one. The existence of a long run equilibrium relationship among the concerned variables is examined by Pesaran and Shin's autoregressive distributed lags model. Since the cointegration tests reveal that there does not exist any long run equilibrium relationship, the ordinary least squares estimation results using the first differenced data are reported. The regression results show that duty drawback is not significant in export promotion, which might arise from inefficiencies such as the false reporting practices.

Suggested Citation

  • Jai S. Mah, 2007. "Duty drawback and export promotion in China," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(2), pages 133-140, January-M.
  • Handle: RePEc:jda:journl:vol.40:year:2007:issue2:pp:133-140

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Imtiaz Ahmad, 2015. "The Value of Export Incentives," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(2), pages 99-127, July-Dec.

    More about this item


    Duty drawback; Export promotion; China;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations


    Access and download statistics


    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:jda:journl:vol.40:year:2007:issue2:pp:133-140. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Abu N.M. Wahid) or (Christopher F. Baum). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.