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Misreported Trade

Author

Listed:
  • Mohammad Farhad
  • Michael Jetter
  • Abu Siddique
  • Andrew Williams

Abstract

We propose a methodology to measure misreported trade across countries and over time in a consistent and comparable manner. Our methodology does not require a priori assumptions about which countries may be more or less likely to misreport. We derive seven indices on overall misreporting, as well as over- and under-reporting of trade, exports, and imports. Exploring bilateral trade data from 1996-2015, we derive country and product rankings and discuss prominent cases, such as China. We conclude with an application, documenting positive and statistically meaningful correlations of tariff and VAT rates with our import under-reporting index, even after controlling for potentially confounding factors.

Suggested Citation

  • Mohammad Farhad & Michael Jetter & Abu Siddique & Andrew Williams, 2019. "Misreported Trade," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2019-13, Economic Statistics Centre of Excellence (ESCoE).
    • Handle: RePEc:nsr:escoed:escoe-dp-2019-13
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    More about this item

    Keywords

    international trade; trade misreporting; tariff evasion;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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