Correlation between misinvoicing and non-tariff measures for Turkey's exports to the EU

Ayºegül Karataº, Halil ªimdi () and Büºra Garip
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Ayºegül Karataº: International Trade and Finance Department, Sakarya Business School, Sakarya University, 54050 Serdivan, Sakarya, Turkey
Halil ªimdi: International Trade and Finance Department, Sakarya Business School, Sakarya University, 54050 Serdivan, Sakarya, Turkey
Büºra Garip: International Trade and Finance Department, Sakarya Business School, Sakarya University, 54050 Serdivan, Sakarya, Turkey

Acta Oeconomica, 2021, vol. 71, issue 2, 327-346

Abstract: Many researchers have analysed the factors that cause discrepancies in the mirror trade statistics. However, the conflicting findings of the relatively limited number of studies on the relation between non-tariff measures and misinvoicing make further research in this area necessary. Therefore, our paper aimed to analyse the impact of non-tariff measures on misinvoicing in the context of Turkey's exports to the European Union (EU) between 2008 and 2015. This study tested the possible relationship between them using other measurable variables related to Turkey's exports to the EU of the products to which the non-tariff measures were applied. This has been done by employing the dynamic generalized method of moments (GMM) as well as the quantile regression (QR) models. It was observed that tariffs, along with non-tariff measures, have negative relationship with the misinvoiced amount. Additionally, it is also observed that the transfer price manipulation appears to be a means of corporate tax evasion. This finding aligns with the decrease in reported imports and the decrease in the perceived levels of corruption.

Keywords: non-tariff measures; misinvoicing; generalized method of moments (GMM); quantile regression (QR); corruption; transfer pricing (search for similar items in EconPapers)
JEL-codes: F13 F14 F41 (search for similar items in EconPapers)
Date: 2021
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