Tax Evasion in Kenya and Tanzania:Evidence from Missing Imports
In this paper we estimate the amount of tax evasion in customs authorities in both Kenya and Tanzania by calculating measurement errors in reported trade flows between the two countries and correlate those errors with tax rates. We find that the measurement error is correlated with the tax rates in both Kenya and Tanzania. According to the Transparency International Corruption Perceptions Index, Kenya is more corrupt than Tanzania, but we find that the coefficient on tax is higher in Tanzania compared to Kenya implying that tax evasion on imported goods is higher in Tanzania compared to the Kenya. We also introduced a third country into our analysis, the United Kingdom, and tax evasion seems to be more severe in trade flows between Kenya and Tanzania compared to trade flows between the United Kingdom and Kenya/Tanzania. Finally we also find that the tax evasion coefficient is lower in the Kenya-United Kingdom case compared to the Tanzanian-United Kingdom case which supports our previous finding that tax evasion is more severe in the Tanzanian customs authority.
|Date of creation:||01 Nov 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 019-30 30 00
Fax: 019-33 25 46
Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Raymond Fisman & Shang-Jin Wei, 2001.
"Tax Rates and Tax Evasion: Evidence from "Missing Imports" in China,"
NBER Working Papers
8551, National Bureau of Economic Research, Inc.
- 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.
- Fisman, Raymond & Wei, Shang-Jin, 2001. "Tax Rates and Tax Evasion: Evidence from 'Missing Imports' in China," CEPR Discussion Papers 3089, C.E.P.R. Discussion Papers.
- Oliver Morrissey & Chris Jones, 2008. "Missed Opportunities: The WTO Trade Policy Review for the East African Community," The World Economy, Wiley Blackwell, vol. 31(11), pages 1409-1432, November.
- Marrelli, Massimo, 1984. "On indirect tax evasion," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 181-196, November.
- Marrelli, M. & Martina, R., 1988. "Tax evasion and strategic behaviour of the firms," Journal of Public Economics, Elsevier, vol. 37(1), pages 55-69, October.
- Javorcik, Beata & Narciso, Gaia, 2008.
"Differentiated Products and Evasion of Import Tariffs,"
CEPR Discussion Papers
6804, C.E.P.R. Discussion Papers.
- 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.
- Javorcik, Beata S. & Narciso, Gaia, 2007. "Differentiated products and evasion of import tariffs," Policy Research Working Paper Series 4123, The World Bank.
- Keith J. Crocker & Joel Slemrod, 2004.
"Corporate Tax Evasion with Agency Costs,"
NBER Working Papers
10690, National Bureau of Economic Research, Inc.
- Antoine Bou�t & Devesh Roy, 2012.
"Trade protection and tax evasion: Evidence from Kenya, Mauritius, and Nigeria,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 21(2), pages 287-320, April.
- Antoine BOUET & Devesh ROY, 2009. "Trade protection and tax evasion: evidence from Kenya, Mauritius and Nigeria," Working Papers 1, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Jun 2009.
- Joao Ernesto Van Dunem & Channing Arndt, 2009. "Estimating Border Tax Evasion in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 1010-1025.
- Pritchett, Lant & Sethi, Geeta, 1994.
"Tariff Rates, Tariff Revenue, and Tariff Reform: Some New Facts,"
World Bank Economic Review,
World Bank Group, vol. 8(1), pages 1-16, January.
- Pritchett, Lant & Sethi, Geeta, 1993. "Tariff rates, tariff revenue, and tariff reform : some new facts," Policy Research Working Paper Series 1143, The World Bank.
- Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
- Kong-Pin Chen & C.Y. Cyrus Chu, 2005. "Internal Control vs. External Manipulation: A Model of Corporate Income Tax Evasion," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 151-164, Winter.
- 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
When requesting a correction, please mention this item's handle: RePEc:hhs:oruesi:2007_008. 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: ()
If references are entirely missing, you can add them using this form.