Mis-invoicing and Trade Policy
Trade statistics reported through official sources may not provide the right information because a regulated system does not induce truthful revelation. Hence, policy prescriptions or evaluations based on official statistics can be misleading. For example, the impact of a devaluation on exports and a decline in tariffs on imports will be overestimated under such circumstances. We adopt the well-known methodology of utilizing partner country statistics to reflect the consequences of devaluations of the Indian Rupee on exports and imports from 1960 to 1998. First statistical evidence is presented, then tractable analytical results are developed.
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Volume (Year): 8 (2005)
Issue (Month): 3 ()
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