Import surveillance and over-invoicing imports: the case of Turkey

Zelal Aktaş, Altan Aldan and Utku Ozmen

Journal of Economic Policy Reform, 2014, vol. 17, issue 4, 360-373

Abstract: Turkey has been implementing import surveillance measures. A possible impact of that is the over-invoicing of imports to avoid surveillance procedures, as goods whose prices are under a predefined reference undergo surveillance. We extend mirror statistics methodology with panel data techniques using highly disaggregated data in order to test for such an impact. Our findings show that import figures of Turkey are inflated by about 2 billion USD in 2011, due to over-reporting induced by surveillance. This might also be the source of systematically positive net errors and omissions item in the balance of payments during the sample period.

Date: 2014
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DOI: 10.1080/17487870.2014.929004

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