IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxy2017i3bp187-205.html
   My bibliography  Save this article

Misinvoicing Analysis in ASEAN-China Free Trade Aggrement (ACFTA)

Author

Listed:
  • Mahjus Ekananda

Abstract

This paper specifically examines the Smuggling that occurred between Indonesia and the ACFTA member countries can be seen from the import-export trade gap.Smuggling occurs because the attempt to avoid tariffs, resulting in the manipulation of incoming documents, both in terms of quantity and price of imported goods. The policy change tariff rates on ACFTA cooperation and increase financial penalties affecting allegedly smuggling.This study uses a fixed effect panel data regression to analyze the policy change. The results obtained are: 1. The reduction of smuggling after the application of policy to reduce tariff rates on ACFTA cooperation, and 2. A decrease in smuggling after the implementation of the policy of increasing the maximum financial penalties.Keyword: Smuggling, Tariff Rates, Financial Pinalties. JEL Code: F14, H26, K42.

Suggested Citation

  • Mahjus Ekananda, 2018. "Misinvoicing Analysis in ASEAN-China Free Trade Aggrement (ACFTA)," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 187-205.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:3b:p:187-205
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_1_17.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Slemrod, Joel & Yitzhaki, Shlomo, 2002. "Tax avoidance, evasion, and administration," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 22, pages 1423-1470, Elsevier.
    3. Raymond Fisman & Shang-Jin Wei, 2004. "Tax Rates and Tax Evasion: Evidence from "Missing Imports" in China," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 471-500, April.
    4. Tulus Suryanto, 2016. "Audit Delay and Its Implication for Fraudulent Financial Reporting: A Study of Companies Listed in the Indonesian Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 18-31.
    5. Mahjus Ekananda, 2017. "Analysis of the Macroeconomic Impact towards the NPL National Banking in Indonesia: The Study of Macro-Economic Shock Using Vector Autoregression Models," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 396-416.
    6. Mohsen Bahmani-Oskooee & Gour G. Goswami, 2003. "Smuggling As Another Cause Of Failure Of The Ppp," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(2), pages 23-38, December.
    7. Yalta, A. Yasemin & Demir, Ishak, 2010. "The Extent of Trade Mis-Invoicing in Turkey: Did Post-1990 Policies Matter?," MPRA Paper 30186, University Library of Munich, Germany.
    8. Stephen Knack & Omar Azfar, 2003. "Trade intensity, country size and corruption," Economics of Governance, Springer, vol. 4(1), pages 1-18, April.
    9. Charles P. Oman & Christiane Arndt, 2006. "Governance Indicators for Development," OECD Development Centre Policy Insights 33, OECD Publishing.
    10. Edsel L. Beja, 2008. "Estimating Trade Mis‐invoicing from China: 2000–2005," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(2), pages 82-92, March.
    11. Andreas Buehn & Stefan Eichler, 2011. "Trade Misinvoicing: The Dark Side of World Trade," The World Economy, Wiley Blackwell, vol. 34(8), pages 1263-1287, August.
    12. Andrey Nechaev & Oksana Antipina, 2016. "Analysis of the Impact of Taxation of Business Entities on the Innovative Development of the Country," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 71-83.
    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. Arcade Ndoricimpa & Eduardo Araral, 2024. "Determinants of illicit capital movement in China‐Africa trade: Evidence of trade misinvoicing," African Development Review, African Development Bank, vol. 36(2), pages 334-349, June.

    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. Sven Steinkamp & Frank Westermann, 2022. "Development aid and illicit capital flight: Evidence from Nepal," The World Economy, Wiley Blackwell, vol. 45(7), pages 2305-2336, July.
    2. 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.
    3. Emmanuel Ekow Asmah & Francis Kwaw Andoh & Edem Titriku, 2020. "Trade misinvoicing effects on tax revenue in sub‐Saharan Africa: The role of tax holidays and regulatory quality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 649-672, December.
    4. Andreas Buehn & Mohammad Reza Farzanegan, 2012. "Smuggling around the world: evidence from a structural equation model," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 3047-3064, August.
    5. Cheung, Yin-Wong & Steinkamp, Sven & Westermann, Frank, 2020. "Capital flight to Germany: Two alternative measures," Journal of International Money and Finance, Elsevier, vol. 102(C).
    6. Lemi, Adugna, 2019. "Catch Me If You Can: Trade Mis-invoicing and Capital Flight in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 28(02), October.
    7. Lemi, Adugna, 2019. "Catch Me If You Can: Trade Mis-invoicing and Capital Flight in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 28(01), April.
    8. Yalta, A. Yasemin & Demir, Ishak, 2010. "The Extent of Trade Mis-Invoicing in Turkey: Did Post-1990 Policies Matter?," MPRA Paper 30186, University Library of Munich, Germany.
    9. Yanos Zylberberg & Francesco Pappada, 2014. "Austerity plans and tax evasion : theory and evidence from Greece," 2014 Meeting Papers 1031, Society for Economic Dynamics.
    10. Todd Kumler & Eric Verhoogen & Judith Frías, 2020. "Enlisting Employees in Improving Payroll Tax Compliance: Evidence from Mexico," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 881-896, December.
    11. Carton, Christine & Slim, Sadri, 2018. "Trade misinvoicing in OECD countries: what can we learn from bilateral trade intensity indices?," MPRA Paper 85703, University Library of Munich, Germany.
    12. Waseem, Mazhar, 2018. "Taxes, informality and income shifting: Evidence from a recent Pakistani tax reform," Journal of Public Economics, Elsevier, vol. 157(C), pages 41-77.
    13. Dean Yang, 2008. "Can Enforcement Backfire? Crime Displacement in the Context of Customs Reform in the Philippines," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 1-14, February.
    14. Daniel Dujava & Maria Siranova, 2017. "Getting the Measures of Trade Misinvoicing Right: Bilateral Panel Data Approach," Working Papers wp98, Institute of Economic Research, Slovak Academy of Sciences, revised 20 Dec 2017.
    15. Andrew Yim, 2009. "Efficient Committed Budget for Implementing Target Audit Probability for Many Inspectees," Management Science, INFORMS, vol. 55(12), pages 2000-2018, December.
    16. Dean Yang, 2008. "Integrity for Hire: An Analysis of a Widespread Customs Reform," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 25-57, February.
    17. 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.
    18. Hashimzade, Nigar & Huang, Zhanyi & Myles, Gareth D., 2010. "Tax fraud by firms and optimal auditing," International Review of Law and Economics, Elsevier, vol. 30(1), pages 10-17, March.
    19. Mohammad Farhad & Michael Jetter & Abu Siddique & Andrew Williams, 2018. "Misreported Trade," CESifo Working Paper Series 7150, CESifo.
    20. Stiller, Wojciech & Heinemann, Marwin, 2024. "Do more harm than good? The optional reverse charge mechanism against cross-border tax fraud," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 61-84.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    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:ers:journl:v:xx:y:2017:i:3b:p:187-205. 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: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    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.