Machinery Production Networks and Tariff Evasion

Mateus Chang and Chin-Ho Lin
Additional contact information
Mateus Chang: Graduate School of Economics, Keio University

No 2017-023, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: In this paper we followed Fisman and Wei's (2004) approach to estimate the effects of import tariff rates on import tariff evasion. We focus on East Asian countries import of machinery products. Our main objective is to test if the trade realized inside production networks (intra-regional) is less prone to import tariff evasion than imports from countries outside it (inter-regional). In this study we considered the differences in tariff evasion between intra and inter-regional imports; parts and components and final products; and the heterogeneity between electric machinery and transport equipment. The data provide evidences that intra-regional imports are less prone to tariff evasion than inter-regional imports. Besides this, we identify differences in the channels employed to evade tariff. The results suggest that underreport of quantities was the main channel employed in intraregional imports tariff evasion, while inter-regional import tariffs were evaded through unit price misreport.

Keywords: Tariff evasion; Import tariff; Machinery Production Networks; East Asia (search for similar items in EconPapers)
JEL-codes: F14 H26 K42 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2017-08-08
New Economics Papers: this item is included in nep-int, nep-iue and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ies.keio.ac.jp/upload/pdf/en/DP2017-023.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:2017-023

Access Statistics for this paper

More papers in Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University Contact information at EDIRC.
Bibliographic data for series maintained by Institute for Economics Studies, Keio University ().