TY - JOUR
T1 - The effect of duty drawback on export promotion
T2 - The case of Korea
AU - Mah, Jai S.
N1 - Funding Information:
This work was supported by the Korea Sankak Foundation in 2006.
PY - 2007/12
Y1 - 2007/12
N2 - This paper examines whether or not the duty drawback system has contributed to promoting Korea's exports. The unit root tests show that they can be assumed to be integrated of order one. Banerjee et al.'s [Banerjee, A., Dolado, J. J., & Mestre, R. (May 1998). Error-correction mechanism tests for cointegration in a single-equation framework. Journal of Time Series Analysis, 19(3), 267-283] small sample error correction mechanism (ECM) test shows that there is no evidence of cointegration. The estimation results show that there are strong evidences of the positive effect of export subsidy in terms of duty drawback on export supply. That is, the efficiently managed duty drawback system may contribute to export promotion significantly.
AB - This paper examines whether or not the duty drawback system has contributed to promoting Korea's exports. The unit root tests show that they can be assumed to be integrated of order one. Banerjee et al.'s [Banerjee, A., Dolado, J. J., & Mestre, R. (May 1998). Error-correction mechanism tests for cointegration in a single-equation framework. Journal of Time Series Analysis, 19(3), 267-283] small sample error correction mechanism (ECM) test shows that there is no evidence of cointegration. The estimation results show that there are strong evidences of the positive effect of export subsidy in terms of duty drawback on export supply. That is, the efficiently managed duty drawback system may contribute to export promotion significantly.
KW - Duty drawback
KW - Export supply
KW - Korea
UR - http://www.scopus.com/inward/record.url?scp=36349004649&partnerID=8YFLogxK
U2 - 10.1016/j.asieco.2007.08.001
DO - 10.1016/j.asieco.2007.08.001
M3 - Article
AN - SCOPUS:36349004649
VL - 18
SP - 967
EP - 973
JO - Journal of Asian Economics
JF - Journal of Asian Economics
SN - 1049-0078
IS - 6
ER -