Smuggling around the World: Evidence from a Structural Equation Model

Andreas Buehn and Mohammad Reza Farzanegan ()

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Abstract: This paper uses a Multiple Indicators Multiple Causes (MIMIC) model to analyze the determinants of smuggling. The analysis reveals that higher corruption and a lower rule of law encourage smuggling. Tariffs and trade restrictions are important push factors, while a higher black market premium (BMP) discourages smugglers. Based on the MIMIC estimates, we calculate an index of smuggling which provides a ranking for 54 countries. We find that smuggling is rampant in Cameroon, Pakistan, and Kenya while it is least prevalent in Switzerland, Finland, and Sweden.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-06-20
Note: View the original document on HAL open archive server: https://hal.science/hal-00710057
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Published in Applied Economics, 2011, pp.1. ⟨10.1080/00036846.2011.570715⟩

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Journal Article: Smuggling around the world: evidence from a structural equation model (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00710057

DOI: 10.1080/00036846.2011.570715

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