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Tariff evasion, the trade gap, and structural trade

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  • Zuzanna Studnicka

    (University College Dublin)

Abstract

While it is well-recognized that there are differences in the trade values reported by exporters and importers, a literature has emerged linking this trade gap to tariff evasion. These efforts, however, lack a structural theoretic underpinning and limit their product-level investigations to a small number of countries. My first contribution is to provide a structural model of endogenous tariff evasion, one which then highlights the importance of both tariffs and border enforcement. My second contribution is to use a global, product-level dataset from 2002 to 2019, the analysis of which is consistent with my model’s predictions.

Suggested Citation

  • Zuzanna Studnicka, 2025. "Tariff evasion, the trade gap, and structural trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(3), pages 1215-1254, August.
    • Handle: RePEc:spr:weltar:v:161:y:2025:i:3:d:10.1007_s10290-025-00583-7
    DOI: 10.1007/s10290-025-00583-7
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    References listed on IDEAS

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    1. Javorcik, Beata S. & Narciso, Gaia, 2008. "Differentiated products and evasion of import tariffs," Journal of International Economics, Elsevier, vol. 76(2), pages 208-222, December.
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    Keywords

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    JEL classification:

    • 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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