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Do Customs Trade Facilitation Programmes Help Reduce Customs-Related Corruption?

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  • Michael, Bryane
  • Popov, Maja

Abstract

Customs-related corruption costs World Customs Organisation (WCO) members at least $2 billion in customs revenue each year. Using recent data only about bribe payers’ actual experiences in paying bribes, we show that trade facilitation would only help reduce corruption and improve efficiency – in a large number of customs agencies -- if the customs agency’s director undertakes a big-bang approach to reform. We also find support for the corruption clubs theory – that customs agencies in the process of reform are either moving toward OECD levels of integrity and efficiency; or they are sliding toward a “red zone” group of countries. Such a sliding results from the incentives corrupt customs officers have to stymie reform. As such, countries undertaking customs programmes – such as those endorsed by the World Customs Organisation – should not adopt reform measures piecemeal. They need to engage in anti-corruption and efficiency-enhancement programmes deeply enough to ensure they benefit from trade facilitation.

Suggested Citation

  • Michael, Bryane & Popov, Maja, 2012. "Do Customs Trade Facilitation Programmes Help Reduce Customs-Related Corruption?," EconStor Preprints 109021, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:109021
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    File URL: https://www.econstor.eu/bitstream/10419/109021/1/Abu%20Dhabi%20Combined.pdf
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    References listed on IDEAS

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    Cited by:

    1. Oecd, 2017. "Making trade work for all," OECD Trade Policy Papers 202, OECD Publishing.
    2. Beverelli, Cosimo & Ticku, Rohit, 2022. "Reducing tariff evasion: The role of trade facilitation," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 534-554.
    3. Fawzi Banao & Bertrand Laporte, 2022. "Terrorism, Customs and fraudulent Gold exports in Africa," CERDI Working papers hal-03889094, HAL.
    4. Yoon Heo & Roman Vernidub, 2015. "Trade facilitation and the regulatory environment in Russia," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 18(1), pages 53-72, March.

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    More about this item

    Keywords

    corruption; customs; trade facilitation; organisational capacity;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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