IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v45y2009i6p1010-1025.html
   My bibliography  Save this article

Estimating Border Tax Evasion in Mozambique

Author

Listed:
  • Joao Ernesto Van Dunem
  • Channing Arndt

Abstract

The relationship between border tax rates and evasion is examined for Mozambique using the methodology developed by Fisman and Wei (2004). We find that high tax rates are associated with high levels of under-reporting of import values and that tax rates have a strong and positive effect on tax evasion. Results also strongly confirm the presence of fraudulent classification of merchandise into lower taxed product categories. Finally, analysis of the revenue implications of lower trade taxes finds that the revenue curve is quite flat but remains upward sloping with respect to the tax rate when only evasion is considered.

Suggested Citation

  • Joao Ernesto Van Dunem & Channing Arndt, 2009. "Estimating Border Tax Evasion in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 1010-1025.
    • Handle: RePEc:taf:jdevst:v:45:y:2009:i:6:p:1010-1025
    DOI: 10.1080/00220380902952324
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380902952324
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220380902952324?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gatti, Roberta, 1999. "Corruption and trade tariffs, or a case for uniform tariffs," Policy Research Working Paper Series 2216, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.
    2. Andam, Kwaw S. & Arndt, Channing & Hartley, Faaiqa, 2017. "Eggs before chickens? Assessing Africa’s livestock revolution with an example from Ghana:," IFPRI discussion papers 1687, International Food Policy Research Institute (IFPRI).
    3. Joël CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2017. "Going beyond analysis of internal data to support customs modernization: a case study in Gabon," Working Papers P173, FERDI.
    4. Mascagni, Giulia & Molla, Kiflu & Mengistu, Andualem, 2021. "Trade Tax Evasion and the Tax Rate: Evidence from Transaction-level Trade Data," Working Papers 16548, Institute of Development Studies, International Centre for Tax and Development.
    5. Andualem T Mengistu & Kiflu G Molla & Giulia Mascagni, 2022. "Trade Tax Evasion and the Tax Rate: Evidence from Transaction-level Trade Data," Journal of African Economies, Centre for the Study of African Economies, vol. 31(1), pages 94-122.
    6. Levin, Jörgen & Widell, Lars M., 2014. "Tax evasion in Kenya and Tanzania: Evidence from missing imports," Economic Modelling, Elsevier, vol. 39(C), pages 151-162.
    7. Lin, Chin-Ho, 2018. "Tariff evasion in machinery production networks: Evidence from East Asia," Economic Modelling, Elsevier, vol. 70(C), pages 115-126.
    8. Joel CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2016. "Décloisonner l’analyse des données pour appuyer la modernisation des douanes : une illustration à partir du Gabon," Working Papers 201618, CERDI.
    9. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," CERDI Working papers halshs-01179445, HAL.
    10. Yi-Chung Hsu & Chien-Chiang Lee, 2016. "Factors Affecting Tax Evasion: Do Interest Rate And Regional Effects Matter?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-23, September.
    11. Mirco Tonin, 2014. "Reporting import tariffs (and other taxes)," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 153-173, February.
    12. Temesgen Worku & Juan P. Mendoza & Jacco L. Wielhouwer, 2016. "Tariff evasion in sub-Saharan Africa: the influence of corruption in importing and exporting countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 741-761, August.
    13. Mohammad Abd Alaffo AlAdham & Mohammed Abdallah Abukhadijeh & Mohammad Fayez Qasem, 2016. "Tax Evasion and Tax Awareness Evidence from Jordan," International Business Research, Canadian Center of Science and Education, vol. 9(12), pages 65-75, December.
    14. Fawzi Banao & Bertrand Laporte, 2022. "Terrorism, Customs and fraudulent Gold exports in Africa," CERDI Working papers hal-03889094, HAL.
    15. Fawzi Banao & Bertrand Laporte, 2022. "Terrorism, Customs and fraudulent Gold exports in Africa," CERDI Working papers hal-03889094, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Sáenz de Viteri Vázquez & Christian Bjørnskov, 2020. "Constitutional power concentration and corruption: evidence from Latin America and the Caribbean," Constitutional Political Economy, Springer, vol. 31(4), pages 509-536, December.
    2. Helpman, Elhanan, 2004. "Trade, FDI, and the International Organization of Production," Conference papers 331311, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Federico Bonaglia & Jorge Braga de Macedo & Maurizio Bussolo, 2009. "How Globalisation Improves Governance," Chapters, in: Linda Yueh (ed.), The Law and Economics of Globalisation, chapter 7, Edward Elgar Publishing.
    4. Lalountas, Dionisios A. & Manolas, George A. & Vavouras, Ioannis S., 2011. "Corruption, globalization and development: How are these three phenomena related?," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 636-648, July.
    5. Michael, Bryane & Popov, Maja, 2012. "Do Customs Trade Facilitation Programmes Help Reduce Customs-Related Corruption?," EconStor Preprints 109021, ZBW - Leibniz Information Centre for Economics.
    6. Richard Mash, 2000. "Host Country-Foreign Investor Bargaining Power and Investment Incentive Provisions in Multilateral Investment Agreements," Economics Series Working Papers 47, University of Oxford, Department of Economics.
    7. Asongu, Simplice, 2017. "Does Globalization Promote Good Governance in Africa? An Empirical Study Across 51 countries," MPRA Paper 82629, University Library of Munich, Germany.
    8. Simplice A. Asongu & Joseph Nnanna, 2021. "Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds," Working Papers 21/015, European Xtramile Centre of African Studies (EXCAS).
    9. Cooray, Arusha & Jha, Chandan Kumar & Panda, Bibhudutta, 2023. "Corruption and assortative matching of partners in international trade," European Journal of Political Economy, Elsevier, vol. 77(C).
    10. Anson Jose & Cadot Olivier & Olarreaga Marcelo, 2006. "Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-26, December.
    11. de Jong, Eelke & Bogmans, Christian, 2011. "Does corruption discourage international trade?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 385-398, June.
    12. Clemens Breisinger & Xinshen Diao & Rainer Schweickert & Manfred Wiebelt, 2010. "Managing Future Oil Revenues in Ghana: An Assessment of Alternative Allocation Options," African Development Review, African Development Bank, vol. 22(2), pages 303-315.
    13. Matthias Helble & Ben Shepherd & John S. Wilson, 2009. "Transparency and Regional Integration in the Asia Pacific," The World Economy, Wiley Blackwell, vol. 32(3), pages 479-508, March.
    14. Cadot, Olivier & Olarreaga, Marcelo & Anson, José, 2003. "Tariff Evasion and Customs Corruption: Does PSI Help?," CEPR Discussion Papers 4167, C.E.P.R. Discussion Papers.
    15. Bchir, Mohamed Hedi & Chemingui, Mohamed Abdelbasset & Karingi, Stephen, 2008. "The Impact of Multilateral Trade Liberalization on Poverty in Kenya: A Multiple Linked Top-Down Approach," Conference papers 331784, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Choudhury, Sanchari, 2019. "WTO membership and corruption," European Journal of Political Economy, Elsevier, vol. 60(C).
    17. Simplice A. Asongu & Uchenna R. Efobi & Vanessa S. Tchamyou, 2016. "Globalization and Governance: A Critical Contribution to the Empirics," Research Africa Network Working Papers 16/017, Research Africa Network (RAN).
    18. Othmani, Abdelhafidh & Slimani, Slah & Bakari, Sayef, 2015. "Les Effets de la Concurrence sur le Commerce Extérieur de la Tunisie : Une Approche du Modèle de Gravité Statique durant la Période 1999-2012 [The Effects of Competition on Foreign Trade in Tunisia," MPRA Paper 80885, University Library of Munich, Germany.
    19. Josh Ederington & Jenny Minier, 2002. "Tariff Uniformity and Growth," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(2), pages 65-73.
    20. Helble, Matthias & Shepherd, Ben & Wilson, John S., 2007. "Transparency, trade costs, and regional integration in the Asia Pacific," Policy Research Working Paper Series 4401, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:45:y:2009:i:6:p:1010-1025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.