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The Extent of Trade Mis-Invoicing in Turkey: Did Post-1990 Policies Matter?


  • Yalta, A. Yasemin
  • Demir, Ishak


We analyze the extent and the direction of trade misinvoicing in the context of the new policy environment that has affected the Turkish economy in the post 1990 period. Utilizing bilateral partner country statistics between Turkey and its major trading partners, we observe persisting export overinvoicing and an oscillating pattern of import misinvoicing at the aggregate level. Country-specific data reveal different patterns. As opposed to the general trend in misinvoicing, exports to China are underinvoiced and imports are overinvoiced. We also analyze how the liberalization policies and the customs union agreement with the European Union countries affect trade misinvoicing. We find that, with trade liberalization policies, import misinvoicing has decreased at the aggregate level. However, contrary to the expectations, customs union agreement did not help decrease the extent of trade misinvoicing in Turkey.

Suggested Citation

  • Yalta, A. Yasemin & Demir, Ishak, 2010. "The Extent of Trade Mis-Invoicing in Turkey: Did Post-1990 Policies Matter?," MPRA Paper 30186, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30186

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    References listed on IDEAS

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    3. 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.
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    6. Kamil Yilmaz & Umit Izmen, 2009. "Turkey's Recent Trade and Foreign Direct Investment Performance," Koç University-TUSIAD Economic Research Forum Working Papers 0902, Koc University-TUSIAD Economic Research Forum.
    7. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Economic implications for Turkey of a Customs Union with the European Union," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 16, pages 395-404 World Scientific Publishing Co. Pte. Ltd..
    8. Sule Ozler & Kamil Yilmaz, 2009. "Productivity response to reduction in trade barriers: evidence from Turkish manufacturing plants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 339-360, July.
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    11. De Wulf, Luc, 1981. "Statistical analysis of under- and overinvoicing of imports," Journal of Development Economics, Elsevier, vol. 8(3), pages 303-323, June.
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    Cited by:

    1. Qureshi, Tehseen Ahmed & Mahmood, Zafar, 2015. "The Size of Trade Misinvoicing in Pakistan," MPRA Paper 65801, University Library of Munich, Germany.
    2. Temesgen Worku & Juan P. Mendoza & Jacco L. Wielhouwer, 2016. "Tariff evasion in sub-Saharan Africa: the influence of corruption in importing and exporting countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 741-761, August.
    3. Kubo, Koji, 2012. "Trade policies and trade mis-reporting in Myanmar," IDE Discussion Papers 326, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item


    International trade; trade misinvoicing; foreign trade statistics; Turkey.;

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F1 - International Economics - - Trade

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