Corruption in Customs
This paper presents a new methodology to detect corruption in customs and applies it to Madagascar’s main port. Manipulation of assignment of import declarations to inspectors is identified by measuring deviations from random assignment prescribed...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/726921634045778647/Corruption-in-Customs http://hdl.handle.net/10986/36388 |
| Summary: | This paper presents a new methodology
to detect corruption in customs and applies it to
Madagascar’s main port. Manipulation of assignment of import
declarations to inspectors is identified by measuring
deviations from random assignment prescribed by official
rules. Deviant declarations are more at risk of tax evasion,
yet less likely to be deemed fraudulent by inspectors, who
also clear them faster. An intervention in which inspector
assignment was delegated to a third party validates the
approach, but also triggered a novel manifestation of
manipulation that rejuvenated systemic corruption. Tax
revenue losses associated with the corruption scheme are
approximately 3 percent of total taxes collected and highly
concentrated among a select few inspectors and brokers. |
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