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

Lennon Jambo Habeenzu

African Journal of Economic Review, 2024, vol. 13, issue 2

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.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:362947

DOI: 10.22004/ag.econ.362947

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