Trade Fraud and Non-Tariff Measures

Hiau Looi Kee and Alessandro Nicita

No 10112, Policy Research Working Paper Series from The World Bank

Abstract: Similar to tariffs, non-tariff measures may induce trade fraud when they are restrictive. This paper examines whether discrepancies observed in the official trade statistics of importing and exporting countries are partly due to trade fraud from evading border non-tariff measures. To capture the restrictiveness of non-tariff measures, the paper estimates the ad valorem equivalent with importer-exporter-product variations. It presents a theoretical model and empirical evidence showing that discrepancies increase with ad valorem equivalents, consistent with the trade fraud due to traders intentionally mis-declaring countries of origin or misclassifying products in order to evade border non-tariff measures. The results are driven by homogeneous products and the trade between developed and developing countries.

Date: 2022-06-29
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://documents.worldbank.org/curated/en/09945810 ... 04c0235eb8c716a6.pdf (application/pdf)

Related works:
Journal Article: Trade fraud and non-tariff measures (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:10112

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().