UID:
edocfu_9958077047702883
Format:
1 online resource (41 p.)
ISBN:
1-4623-6189-7
,
1-4527-6627-4
,
1-282-44822-6
,
9786613821416
,
1-4519-1077-0
Series Statement:
IMF working paper ; WP/07/60
Content:
We examine the effect of tariff policies on evasion of customs duties, in the context of the trade reform in India of the 1990s. We exploit the variation in tariff rates across time and products to identify the evasion elasticity, namely, the effect of tariffs on evasion, and relate this elasticity to factors related to customs enforcement or the quality of customs institutions. We find a positive and robust effect of tariffs on import tax evasion. We then show that the evasion elasticity is influenced by certain product characteristics that determine how easy it is to detect evasion (with more differentiated products exhibiting a higher evasion elasticity). This evasion elasticity, which we broadly interpret as reflecting the quality of customs administration, has not improved over the 1990s. Finally, our results suggest that the effectiveness of customs in addressing evasion may be better in India than China, although China appears to be catching up over time.
Note:
"March 2007".
,
Contents; I. Introduction; Figures; 1. Evolution of Tariffs in India; 2. Customs Seizures and Evasion Over Time, 1988-2004; II. Defining Evasion; III. Data; IV. Empirical Strategy; V. Results; A. Elasticity of Evasion with Respect to Tariff Rates; B. Enforcement and the Elasticity of Evasion with Respect to Tariff Rates; VI. Enforcement Quality Over Time; 3. Elasticity of Evasion wrt Tariffs Over Time, 1988-2001-95 Percent Confidence Bands; VII. Babu Versus Mandarin: Comparing Chinese and Indian Customs Enforcement; 4. Alternative Indices of Institutions, India; VIII. Concluding Remarks
,
Tables1. Summary Statistics; 2. Evasion and Tariffs; 3. Evasion, Tariffs and Tariffs on Similar Products; 4. Evasion, Customs and Excise Tariffs; 5. Evasion, Tariffs and Industry Use-Type; 6. Evasion, Tariffs and Differentiated Goods; 7. Evasion and Tariffs: Share of Transactions, Sea vs. Air; 8. Evasion, Tariffs and Wages of Customs Inspectors and Commissioners; 9a. Evasion and Tariffs: Period Interactions; 9b. Evasion and Tariffs, Controlling for Tariffs of Similar Products: Period Interactions; 10. Average Statutory and Effective Tariff Rates (China and India), 1990-2001
,
11. Evasion and Tariffs: China and IndiaAppendix Tables; 12. Match Rates of Products and Values Across Different Trading Partners; 13. Evasion and Tariffs at the Product Level; 14. Evasion and Tariffs: Same Set of Products Over Time; 15. Evasion, Tariff and Squared Tariff; 16. Evasion and Tariffs: Flexible Functional Form; 17. Evasion and Tariffs-Sample Split by Institutional Quality of Partner; 18. Characteristics of Products Included in Fisman-Wei Sample; 19. Freeman and Oostendorp Occupational Database, Comparator Groups; References
,
English
Additional Edition:
ISBN 1-4518-6624-0
Language:
English
Bookmarklink
