IDEAS home Printed from https://ideas.repec.org/a/taf/rjbsxx/v30y2015i3p437-451.html
   My bibliography  Save this article

A Case Study on Shuttle Trade between Korea and China

Author

Listed:
  • Chang-Ryung Han
  • Hans Nelen
  • Yeonho Kang

Abstract

Informal trade exists in almost all countries and thrives in some regions. As many countries suffer from fiscal deficits, their governments seek hidden revenue sources. Informal cross-border trade that is non-compliant with regulatory revenue requirements such as the payment of customs duties is one source that is currently being targeted. This study, which employs case study methodology, examines shuttle trade between Korea and China from the perspective of the Korea Customs Service (KCS). While examining the connotation of informal trade, drawing on legality and tolerance, this study characterizes casual shuttle trade in Korea as illegal-but-tolerable. The study, drawing on Killias's theory of breaches, demonstrates that the shuttle trade in Korea emerged due to a combination of factors, namely trade quotas rates and the emergence of ferry lines between Korea and China, and has grown as a result of both the economic downturn and an increase in the demand for express delivery service between Korea and China. This study illustrates how the KCS has criminalized shuttle trade as a result of tax evasion, health concerns, and protection of Korean industries.

Suggested Citation

  • Chang-Ryung Han & Hans Nelen & Yeonho Kang, 2015. "A Case Study on Shuttle Trade between Korea and China," Journal of Borderlands Studies, Taylor & Francis Journals, vol. 30(3), pages 437-451, September.
    • Handle: RePEc:taf:rjbsxx:v:30:y:2015:i:3:p:437-451
    DOI: 10.1080/08865655.2015.1068205
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08865655.2015.1068205
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08865655.2015.1068205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Mr. John D Brondolo, 2009. "Collecting Taxes During an Economic Crisis: Challenges and Policy Options," IMF Staff Position Notes 2009/017, International Monetary Fund.
    2. John Brondolo, 2009. "Collecting Taxes During an Economic Crisis; Challenges and Policy Options," IMF Staff Position Notes 2009/17, International Monetary Fund.
    3. Mr. Harm Zebregs & Ms. Wanda S Tseng, 2002. "Foreign Direct Investment in China: Some Lessons for Other Countries," IMF Policy Discussion Papers 2002/003, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    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. Richardson, Grant & Taylor, Grantley & Lanis, Roman, 2015. "The impact of financial distress on corporate tax avoidance spanning the global financial crisis: Evidence from Australia," Economic Modelling, Elsevier, vol. 44(C), pages 44-53.
    2. Steven A. Symansky & Thomas Baunsgaard, 2009. "Automatic Fiscal Stabilizers," IMF Staff Position Notes 2009/23, International Monetary Fund.
    3. Athira, A. & Ramesh, Vishnu K., 2023. "COVID-19 and corporate tax avoidance: International evidence," International Business Review, Elsevier, vol. 32(4).
    4. Hartmann, Andre J. & Gangl, Katharina & Kasper, Matthias & Kirchler, Erich & Kocher, Martin G. & Mueller, Martin & Sonntag, Axel, 2022. "The economic crisis during the COVID-19 pandemic has a negative effect on tax compliance: Results from a scenario study in Austria," Journal of Economic Psychology, Elsevier, vol. 93(C).
    5. Dell’Anno, Roberto & Davidescu, Adriana AnaMaria, 2019. "Estimating shadow economy and tax evasion in Romania. A comparison by different estimation approaches," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 130-149.
    6. Francesco Berardini & Fabrizio Renzi, 2022. "Mind the Gap! The (unexpected) impact of COVID-19 pandemic on VAT revenue in Italy," Questioni di Economia e Finanza (Occasional Papers) 669, Bank of Italy, Economic Research and International Relations Area.
    7. Athanasios O. Tagkalakis, 2014. "Is there any evidence of VAT related buoyancy effects in Greece?," Economics Bulletin, AccessEcon, vol. 34(3), pages 1762-1775.
    8. Alexander I. Pogorletskiy, 2017. "Tax policy in the contemporary world: peculiarities and prospects, implementation in Russia," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 3(1), pages 29-42.
    9. Tao Chen & Sidney Leung & Lingmin Xie, 2021. "Does credit rating conservatism matter for corporate tax avoidance?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5681-5730, December.
    10. Richardson, Grant & Lanis, Roman & Taylor, Grantley, 2015. "Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis," Journal of Banking & Finance, Elsevier, vol. 52(C), pages 112-129.
    11. Mr. Tigran Poghosyan, 2011. "Assessing the Variability of Tax Elasticities in Lithuania," IMF Working Papers 2011/270, International Monetary Fund.
    12. Ioannis Gasteratos & Michael Karamalis & Andreas Koutoupis & Ioannis Filos, 2016. "Earnings Management in Greece: A Case Study in Construction Sector Using Jones Model," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 3-16.
    13. Antonio Gómez Gómez-Plana & Pedro Pascual Arzoz, 2011. "Fraude fiscal e IVA en España: incidencia en un modelo de equilibrio general," Hacienda Pública Española / Review of Public Economics, IEF, vol. 199(4), pages 9-52, December.
    14. Machado, Roberto & Zuloeta, José, 2012. "The Impact of the Business Cycle on Elasticities of Tax Revenue in Latin America," IDB Publications (Working Papers) 4064, Inter-American Development Bank.
    15. Mr. John D Brondolo & Zhiyong Zhang, 2016. "Tax Administration Reform in China: Achievements, Challenges, and Reform Priorities," IMF Working Papers 2016/068, International Monetary Fund.
    16. Zhu, Jun & Ho, Kung-Cheng & Luo, Sijia & Peng, Langchuan, 2023. "Pandemic and tax avoidance: Cross-country evidence," Economic Modelling, Elsevier, vol. 124(C).
    17. Amir, Md. Khaled & Amir, Md Zobayer, 2020. "COVID-19 Pandemic: Socio-economic Response, Recovery and Reconstruction Policies on Major Global Sectors," MPRA Paper 101244, University Library of Munich, Germany, revised 17 Jun 2020.
    18. Vlada V. Karpova & Viktoriia F. Tyschenko & Viktoriia N. Ostapenko & Yuriy B. Ivanov, 2020. "Anti-Crisis Fiscal Measures in the European Union during the COVID-19 Pandemic and their Impact on GDP," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 6(3), pages 225-243.
    19. Ms. Cemile Sancak & Jing Xing & Ricardo Velloso, 2010. "Tax Revenue Response to the Business Cycle," IMF Working Papers 2010/071, International Monetary Fund.
    20. Khaled, Md. Khaled Bin Amir, 2020. "COVID-19 pandemic: A snapshot of global economic repercussions and possible retaliation," MPRA Paper 100969, University Library of Munich, Germany.

    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:rjbsxx:v:30:y:2015:i:3:p:437-451. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjbs20 .

    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.