Determinants of Trade Misinvoicing

Ila Patnaik, Abhijit Sen Gupta and Ajay Shah

Open Economies Review, 2012, vol. 23, issue 5, 910 pages

Abstract: Trade misinvoicing should be seen as an element of de facto capital account openness. Traditional explanations for trade misinvoicing—high custom duties and weak domestic economies—are less persuasive in a world of high growth emerging markets that have low trade barriers. We construct a 53-country data set over a 26 year span, covering both industrialized and developing countries, to study the phenomena of export and import misinvoicing. Capital account openness, differentials in interest rates, political stability, corruption, indebtedness and the exchange rate regime are identified as factors related to misinvoicing. Copyright Springer Science+Business Media, LLC 2012

Keywords: Trade Misinvoicing; Capital controls; Capital account openness; Political stability; Custom duties; F14; F32; F41; F43 (search for similar items in EconPapers)
JEL-codes: F14 F32 F41 F43 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (15)

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Working Paper: Determinants of Trade Misinvoicing (2010)
Working Paper: Determinants of Trade Misinvoicing (2010)
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DOI: 10.1007/s11079-011-9214-4

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