Determinants of Trade Misinvoicing
Published By: NIPFP on eSS | Published Date: October, 22 , 2010Traditional explanations for trade misinvoicing -- high custom duties
and weak domestic economies — are less persuasive in a world of high
growth emerging markets who have low trade barriers. A 35-
country data set over a 26 year span, covering both industrialised and
developing countries, to study the phenomena of export and import
misinvoicing is costructed. Capital account openness, differentials in interest rates,
political stability, corruption, indebtedness and the exchange rate regime
are identified as factors related to misinvoicing. Trade misinvoicing should
be seen as one element of de facto capital account openness. [Working Paper No. 2010-75].
Author(s): Ajay Shah, Abhijit Sen Gupta, Ila Patnaik | Posted on: Nov 22, 2010 | Views(1587) | Download (934)