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Illegal trade in natural resources: Evidence from missing exports

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  • Pierre-Louis Vezina

Abstract

Countries restrict the export of natural resources to lower domestic prices, stimulate downstream industries, earn rents on international markets, or on environmental grounds. This paper provides empirical evidence of evasion of such export barriers. Using tools from the illicit trade literature, I show that exports of minerals, metals, or wood products are more likely to be missing from the exporter's statistics if they face export barriers such as prohibitions or taxes. Furthermore, I show that this relationship is signi cantly higher in countries with high levels of corruption and bribes at customs. The results have implications for the design of trade policies and environmental protection.

Suggested Citation

  • Pierre-Louis Vezina, 2014. "Illegal trade in natural resources: Evidence from missing exports," OxCarre Working Papers 139, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    • Handle: RePEc:oxf:oxcrwp:139
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    References listed on IDEAS

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    Cited by:

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    2. Serge Mandiefe Piabuo & Peter A. Minang & Chupezi Julius Tieguhong & Divine Foundjem-Tita & Frankline Nghobuoche, 2021. "Illegal logging, governance effectiveness and carbon dioxide emission in the timber-producing countries of Congo Basin and Asia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14176-14196, October.
    3. Robert G. Blanton & Bryan Early & Dursun Peksen, 2018. "Out of the shadows or into the dark? Economic openness, IMF programs, and the growth of shadow economies," The Review of International Organizations, Springer, vol. 13(2), pages 309-333, June.
    4. Peyton Michael Ferrier, 2021. "Detecting origin fraud with trade data: the case of U.S. honey imports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 222-245, January.
    5. Packey, Daniel J. & Kingsnorth, Dudley, 2016. "The impact of unregulated ionic clay rare earth mining in China," Resources Policy, Elsevier, vol. 48(C), pages 112-116.
    6. Luis A. Tercero Espinoza & Marcel Soulier, 2016. "An examination of copper contained in international trade flows," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 29(2), pages 47-56, December.

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    More about this item

    Keywords

    natural resources; illegal trade; trade barriers;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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