Illegal trade in natural resources: Evidence from missing exports

Pierre-Louis Vézina

No 139, OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford

Abstract: Countries restrict the export of natural resources to lower domestic prices, stimulate downstream industries, earn rents on international markets, or on environmental grounds. This paper provides empirical evidence of evasion of such export barriers. Using tools from the illicit trade literature, I show that exports of minerals, metals, or wood products are more likely to be missing from the exporter's statistics if they face export barriers such as prohibitions or taxes. Furthermore, I show that this relationship is signi cantly higher in countries with high levels of corruption and bribes at customs. The results have implications for the design of trade policies and environmental protection.

Keywords: natural resources; illegal trade; trade barriers (search for similar items in EconPapers)
JEL-codes: F13 O17 O19 (search for similar items in EconPapers)
Date: 2014-05-31
New Economics Papers: this item is included in nep-agr, nep-env and nep-int
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Journal Article: Illegal trade in natural resources: Evidence from missing exports (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:oxf:oxcrwp:139

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