Differentiated Products and Evasion of Import 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 difficult...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/02/7351724/differentiated-products-evasion-import-tariffs http://hdl.handle.net/10986/7126 |
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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 |
| _version_ |
1764401461807022080 |