Trade Fraud and Non-Tariff Measures
Similar to tariffs, non-tariff measures may induce trade fraud when they are restrictive. This paper examines whether discrepancies observed in the official trade statistics of importing and exporting countries are partly due to trade fraud from ev...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099458106292296273/IDU0b25d29bb0fa0e044ae0904c0235eb8c716a6 http://hdl.handle.net/10986/37635 |
| Summary: | Similar to tariffs, non-tariff
measures may induce trade fraud when they are restrictive.
This paper examines whether discrepancies observed in the
official trade statistics of importing and exporting
countries are partly due to trade fraud from evading border
non-tariff measures. To capture the restrictiveness of
non-tariff measures, the paper estimates the ad valorem
equivalent with importer-exporter-product variations. It
presents a theoretical model and empirical evidence showing
that discrepancies increase with ad valorem equivalents,
consistent with the trade fraud due to traders intentionally
mis-declaring countries of origin or misclassifying products
in order to evade border non-tariff measures. The results
are driven by homogeneous products and the trade between
developed and developing countries. |
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