Tariff Evasion, the Trade Gap, and Structural Trade
Ronald Davies and
No 10151, CESifo Working Paper Series from CESifo
While it is well-recognized that there are differences in the trade values reported by exporters and importers, a literature has emerged linking this trade gap to tariff evasion. These efforts, however, lack a structural theoretic underpinning and limit their product-level investigations to a small number of countries. Our first contribution is to provide a structural model of endogenous tariff evasion, one which then highlights the importance of both tariffs and border enforcement. Our second contribution is to use a global, product-level dataset from 2002-2019, the analysis of which is consistent with our model’s predictions.
Keywords: tariff evasion; structural gravity; trade gap; border controls (search for similar items in EconPapers)
JEL-codes: F13 F14 H26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-iue
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10151
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