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...

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Main Authors: Kee, Hiau Looi, Nicita, Alessandro
Format: Working Paper
Language:English
en_US
Published: Washington, DC : World Bank 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099458106292296273/IDU0b25d29bb0fa0e044ae0904c0235eb8c716a6
http://hdl.handle.net/10986/37635
id okr-10986-37635
recordtype oai_dc
spelling okr-10986-376352022-07-06T05:10:36Z Trade Fraud and Non-Tariff Measures Kee, Hiau Looi Nicita, Alessandro TRADE TRADE FRAUD OFFICIAL TRADE STATISTICS DISCREPANCIES NON-TARIFF MEASURES TARIFF EVASION HOMOGENEOUS PRODUCTS DEVELOPING COUNTRIES DEVELOPED COUNTRIES 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. 2022-07-05T21:03:00Z 2022-07-05T21:03:00Z 2022-06 Working Paper http://documents.worldbank.org/curated/en/099458106292296273/IDU0b25d29bb0fa0e044ae0904c0235eb8c716a6 http://hdl.handle.net/10986/37635 English en_US Policy Research Working Paper;10112 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Publications & Research Publications & Research :: Policy Research Working Paper World
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic TRADE
TRADE FRAUD
OFFICIAL TRADE STATISTICS
DISCREPANCIES
NON-TARIFF MEASURES
TARIFF EVASION
HOMOGENEOUS PRODUCTS
DEVELOPING COUNTRIES
DEVELOPED COUNTRIES
spellingShingle TRADE
TRADE FRAUD
OFFICIAL TRADE STATISTICS
DISCREPANCIES
NON-TARIFF MEASURES
TARIFF EVASION
HOMOGENEOUS PRODUCTS
DEVELOPING COUNTRIES
DEVELOPED COUNTRIES
Kee, Hiau Looi
Nicita, Alessandro
Trade Fraud and Non-Tariff Measures
geographic_facet World
relation Policy Research Working Paper;10112
description 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.
format Working Paper
author Kee, Hiau Looi
Nicita, Alessandro
author_facet Kee, Hiau Looi
Nicita, Alessandro
author_sort Kee, Hiau Looi
title Trade Fraud and Non-Tariff Measures
title_short Trade Fraud and Non-Tariff Measures
title_full Trade Fraud and Non-Tariff Measures
title_fullStr Trade Fraud and Non-Tariff Measures
title_full_unstemmed Trade Fraud and Non-Tariff Measures
title_sort trade fraud and non-tariff measures
publisher Washington, DC : World Bank
publishDate 2022
url http://documents.worldbank.org/curated/en/099458106292296273/IDU0b25d29bb0fa0e044ae0904c0235eb8c716a6
http://hdl.handle.net/10986/37635
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