IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v21y2012i3p347-360.html
   My bibliography  Save this article

Import tariff led export under-invoicing: A paradox

Author

Listed:
  • Amit K. Biswas

Abstract

Prolonged worldwide economic depression forces some economists and policy makers to demand tougher regulation to protect their domestic economy. If implemented, this may lead to a high-tariff regime that ruled the pre-globalised world economy. This paper examines the consequences of a tariff protected trade regime. It takes up the case of trade misreporting phenomena under the framework of protected regime. It builds up a basic trade mis-invoicing model and then develops collusion between underreporting traders of partner countries. I show that high tariff barrier gives incentives not only to the importers but also to the exporters to gain by underreporting the trade statistics. Interestingly, this paper shows that even if foreign exchange is fully floated, underground foreign exchange market can be created and exporters may rationally underreport without any gain through black market premium -- a departure from conventional theory.

Suggested Citation

  • Amit K. Biswas, 2012. "Import tariff led export under-invoicing: A paradox," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(3), pages 347-360, April.
  • Handle: RePEc:taf:jitecd:v:21:y:2012:i:3:p:347-360
    DOI: 10.1080/09638199.2010.486077
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2010.486077
    Download Restriction: Access to full text is restricted to subscribers.

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

    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:jitecd:v:21:y:2012:i:3:p:347-360. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.