Gotcha! A Profile of Smuggling in International Trade
AbstractThis paper explores official trade data to identify patterns of smuggling in international trade. Our main measure of interest is the difference in matched partner trade statistics, i.e., the extent to which the recorded export value in the source country deviates from the reportedimport value in the destination country. Analyzing 4-digit product level data for the world’s five largest importers for the period from 2002-2006, we find that the reporting gaps are highly correlated with the level of corruption in both partner countries. This finding supports the hypothesis that trade gaps partly represent smuggling activities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2475.
Date of creation: 2008
Date of revision:
corruption; illicit; illegal; trade; statistics; tariffs;
Other versions of this item:
- Berger, Helge & Nitsch, Volker, 2008. "Gotcha!: a profile of smuggling in international trade," Discussion Papers 2008/6, Free University Berlin, School of Business & Economics.
- Helge Berger & Volker Nitsch, 2008. "Gotcha! A Profile of Smuggling in International Trade," DEGIT Conference Papers c013_026, DEGIT, Dynamics, Economic Growth, and International Trade.
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F19 - International Economics - - Trade - - - Other
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Raymond Fisman & Shang-Jin Wei, 2009.
"The Smuggling of Art, and the Art of Smuggling: Uncovering the Illicit Trade in Cultural Property and Antiques,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 1(3), pages 82-96, July.
- Raymond Fisman & Shang-Jin Wei, 2007. "The Smuggling of Art, and the Art of Smuggling: Uncovering the Illicit Trade in Cultural Property and Antiques," NBER Working Papers 13446, National Bureau of Economic Research, Inc.
- Deardorff, A.V. & Stolper, W.F., 1988.
"Effects Of Smuggling Under African Conditions: A Factual, Institutional And Analytic Discussion,"
230, Research Seminar in International Economics, University of Michigan.
- Alan Deardorff & Wolfgang Stolper, 1990. "Effects of smuggling under african conditions: A factual, institutional and analytic discussion," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 126(1), pages 116-141, March.
- Dabla-Norris, Era & Gradstein, Mark & Inchauste, Gabriela, 2008.
"What causes firms to hide output? The determinants of informality,"
Journal of Development Economics,
Elsevier, vol. 85(1-2), pages 1-27, February.
- Gabriela Inchauste & Mark Gradstein & Era Dabla-Norris, 2005. "What Causes Firms to Hide Output? the Determinants of Informality," IMF Working Papers 05/160, International Monetary Fund.
- David Hummels & Volodymyr Lugovskyy, 2006. "Are Matched Partner Trade Statistics a Usable Measure of Transportation Costs?," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 69-86, 02.
- Rozanski, Jerzy & Yeats, Alexander, 1994. "On the (in)accuracy of economic observations: An assessment of trends in the reliability of international trade statistics," Journal of Development Economics, Elsevier, vol. 44(1), pages 103-130, June.
- Bhagwati, Jagdish N & Hansen, Bent, 1973. "A Theoretical Analysis of Smuggling," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 172-87, May.
- Yeats, Alexander J, 1978. "On the Accuracy of Partner Country Trade Statistics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 341-61, November.
- Weber, Henning & Herwartz, Helmut, 2008.
"When, how fast and by how much do trade costs change in the euro area?,"
2008/18, Free University Berlin, School of Business & Economics.
- Herwartz, Helmut & Weber, Henning, 2008. "When, how fast and by how much do trade costs change in the euro area?," Economics Working Papers 2008,17, Christian-Albrechts-University of Kiel, Department of Economics.
- Helmut Herwartz & Henning Weber, 2008. "When, How Fast and by How Much do Trade Costs change in the Euro Area?," SFB 649 Discussion Papers SFB649DP2008-065, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Mohammad Reza Farzanegan, 2008.
"Illegal Trade in the Iranian Economy: Evidence from a Structural Model,"
409, Economic Research Forum, revised Jun 2008.
- Farzanegan, Mohammad Reza, 2009. "Illegal trade in the Iranian economy: Evidence from a structural model," European Journal of Political Economy, Elsevier, vol. 25(4), pages 489-507, December.
- Mohammad Reza Farzanegan, 2008. "Illegal Trade in the Iranian Economy: Evidence from a Structural Model," CESifo Working Paper Series 2397, CESifo Group Munich.
- Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011.
"Gov-aargh-nance - "even criminals need law and order","
CEDI Discussion Paper Series
11-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011. "Gov-aargh-nance: "Even Criminals Need Law and Order"," Economics of Security Working Paper Series 46, DIW Berlin, German Institute for Economic Research.
- de Groot, Olaf J. & Rablen, Matthew D. & Shortland, Anja, 2011. "Gov-Aargh-Nance – “Even Criminals Need Law And Order”," NEPS Working Papers 7/2011, Network of European Peace Scientists.
- Nitsch, Volker, 2011. "Trade Mispricing and Illicit Flows," Darmstadt Discussion Papers in Economics 54540, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Pierre-Louis Vézina; Lorenzo Rotunno, 2010.
"Chinese networks and tariff evasion,"
IHEID Working Papers
20-2010, Economics Section, The Graduate Institute of International Studies, revised Nov 2010.
- Olaf J. de Groot & Anja Shortland, 2010.
"Gov-arrrgh-nance: Jolly Rogers and Dodgy Rulers,"
Economics of Security Working Paper Series
39, DIW Berlin, German Institute for Economic Research.
- Pierre-Louis Vezina, 2014. "Illegal Trade in Natural Resources: Evidence from missing exports," OxCarre Working Papers 139, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.