id okr-10986-7126
recordtype oai_dc
spelling okr-10986-71262021-04-23T14:02:32Z Differentiated Products and Evasion of Import Tariffs Javorcik, Beata S. Narciso, Gaia AGRICULTURAL PRODUCTS AVERAGE TARIFF AVERAGE TRADE BILATERAL TRADE BUSINESS ENVIRONMENT COMMODITIES COUNTRY TARIFF CUSTOMS CLEARANCE CUSTOMS CLEARANCE PROCEDURES DIFFERENTIATED GOODS EXPORT _ QUANTITY EXPORT PRICES FOREIGN DIRECT INVESTMENT FOREIGN SUPPLIERS HIGH TARIFF PRODUCTS HOME MARKET IMPORT DUTIES IMPORT DUTY IMPORT PRICES IMPORT TARIFFS INTERNATIONAL AGREEMENTS POLITICAL ECONOMY PREFERENTIAL TARIFF PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PRICE OF IMPORTS PRICED PRODUCT DIFFERENTIATION TARIFF BARRIERS TARIFF DATA TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF STRUCTURE TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE RELATIONSHIPS TRADING PARTNER TRANSPORT COSTS VALUE OF EXPORTS VALUE OF IMPORTS WHOLESALERS WORLD TRADE WORLD TRADE ORGANIZATION ZERO TARIFF ZERO TARIFFS Emerging literature has demonstrated some unique characteristics of trade in differentiated products. This paper contributes to the literature by postulating that differentiated products may be subject to greater tariff evasion due to the difficulties associated with assessing their quality and price. Using product-level data on trade between Germany and 10 Eastern European countries during 1992-2003, the authors find empirical support for this hypothesis. They show that the trade gap, defined as the discrepancy between the value of exports reported by Germany and the value of imports from Germany reported by the importing country, is positively related to the level of tariff in 8 out of 10 countries. Further, the authors show that the responsiveness of the trade gap to the tariff level is greater for differentiated products than for homogeneous goods. A one-percentage-point increase in the tariff rate is associated with a 0.6 percent increase in the trade gap in the case of homogeneous products and a 2.1 percent increase in the case of differentiated products. Finally, the data indicate that greater tariff evasion observed for differentiated products tends to take place through misrepresentation of the import prices. 2012-06-05T16:23:57Z 2012-06-05T16:23:57Z 2007-02 http://documents.worldbank.org/curated/en/2007/02/7351724/differentiated-products-evasion-import-tariffs http://hdl.handle.net/10986/7126 English Policy Research Working Paper; No. 4123 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Romania Bulgaria Czech Republic Hungary Germany Lithuania Latvia Russian Federation Poland
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL PRODUCTS
AVERAGE TARIFF
AVERAGE TRADE
BILATERAL TRADE
BUSINESS ENVIRONMENT
COMMODITIES
COUNTRY TARIFF
CUSTOMS CLEARANCE
CUSTOMS CLEARANCE PROCEDURES
DIFFERENTIATED GOODS
EXPORT _ QUANTITY
EXPORT PRICES
FOREIGN DIRECT INVESTMENT
FOREIGN SUPPLIERS
HIGH TARIFF PRODUCTS
HOME MARKET
IMPORT DUTIES
IMPORT DUTY
IMPORT PRICES
IMPORT TARIFFS
INTERNATIONAL AGREEMENTS
POLITICAL ECONOMY
PREFERENTIAL TARIFF
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE OF IMPORTS
PRICED
PRODUCT DIFFERENTIATION
TARIFF BARRIERS
TARIFF DATA
TARIFF LEVELS
TARIFF RATE
TARIFF RATES
TARIFF STRUCTURE
TRADE DATA
TRADE FLOWS
TRADE LIBERALIZATION
TRADE RELATIONSHIPS
TRADING PARTNER
TRANSPORT COSTS
VALUE OF EXPORTS
VALUE OF IMPORTS
WHOLESALERS
WORLD TRADE
WORLD TRADE ORGANIZATION
ZERO TARIFF
ZERO TARIFFS
spellingShingle AGRICULTURAL PRODUCTS
AVERAGE TARIFF
AVERAGE TRADE
BILATERAL TRADE
BUSINESS ENVIRONMENT
COMMODITIES
COUNTRY TARIFF
CUSTOMS CLEARANCE
CUSTOMS CLEARANCE PROCEDURES
DIFFERENTIATED GOODS
EXPORT _ QUANTITY
EXPORT PRICES
FOREIGN DIRECT INVESTMENT
FOREIGN SUPPLIERS
HIGH TARIFF PRODUCTS
HOME MARKET
IMPORT DUTIES
IMPORT DUTY
IMPORT PRICES
IMPORT TARIFFS
INTERNATIONAL AGREEMENTS
POLITICAL ECONOMY
PREFERENTIAL TARIFF
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE OF IMPORTS
PRICED
PRODUCT DIFFERENTIATION
TARIFF BARRIERS
TARIFF DATA
TARIFF LEVELS
TARIFF RATE
TARIFF RATES
TARIFF STRUCTURE
TRADE DATA
TRADE FLOWS
TRADE LIBERALIZATION
TRADE RELATIONSHIPS
TRADING PARTNER
TRANSPORT COSTS
VALUE OF EXPORTS
VALUE OF IMPORTS
WHOLESALERS
WORLD TRADE
WORLD TRADE ORGANIZATION
ZERO TARIFF
ZERO TARIFFS
Javorcik, Beata S.
Narciso, Gaia
Differentiated Products and Evasion of Import Tariffs
geographic_facet Europe and Central Asia
Romania
Bulgaria
Czech Republic
Hungary
Germany
Lithuania
Latvia
Russian Federation
Poland
relation Policy Research Working Paper; No. 4123
description Emerging literature has demonstrated some unique characteristics of trade in differentiated products. This paper contributes to the literature by postulating that differentiated products may be subject to greater tariff evasion due to the difficulties associated with assessing their quality and price. Using product-level data on trade between Germany and 10 Eastern European countries during 1992-2003, the authors find empirical support for this hypothesis. They show that the trade gap, defined as the discrepancy between the value of exports reported by Germany and the value of imports from Germany reported by the importing country, is positively related to the level of tariff in 8 out of 10 countries. Further, the authors show that the responsiveness of the trade gap to the tariff level is greater for differentiated products than for homogeneous goods. A one-percentage-point increase in the tariff rate is associated with a 0.6 percent increase in the trade gap in the case of homogeneous products and a 2.1 percent increase in the case of differentiated products. Finally, the data indicate that greater tariff evasion observed for differentiated products tends to take place through misrepresentation of the import prices.
format Publications & Research :: Policy Research Working Paper
author Javorcik, Beata S.
Narciso, Gaia
author_facet Javorcik, Beata S.
Narciso, Gaia
author_sort Javorcik, Beata S.
title Differentiated Products and Evasion of Import Tariffs
title_short Differentiated Products and Evasion of Import Tariffs
title_full Differentiated Products and Evasion of Import Tariffs
title_fullStr Differentiated Products and Evasion of Import Tariffs
title_full_unstemmed Differentiated Products and Evasion of Import Tariffs
title_sort differentiated products and evasion of import tariffs
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/02/7351724/differentiated-products-evasion-import-tariffs
http://hdl.handle.net/10986/7126
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