Import Surveillance and Over Invoicing of Imports in Turkey
Turkey has been implementing import surveillance measures in order to protect its industry from unfair price cuts. One possible impact of the import surveillance mechanism is over invoicing of imports in order to avoid surveillance procedures since the procedures are applied to goods with prices under a predefined reference price. In this paper, we investigate whether import surveillance mechanism causes rise in the import figures due to over invoicing. We extend the mirror statistics methodology with panel data techniques using a highly disaggregated data set. Our results suggest that, import surveillance mechanism causes over invoicing and that import figures of Turkey are inflated by around 2 to 3 billion dollars as of 2011.
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