Differentiated Products and Evasion of Import Tariffs

dc.creatorJavorcik, Beata S.
dc.creatorNarciso, Gaia
dc.date2012-06-05T16:23:57Z
dc.date2012-06-05T16:23:57Z
dc.date2007-02
dc.date.accessioned2026-07-01T01:12:40Z
dc.descriptionEmerging literature has demonstrated some unique characteristics of trade in differentiated products. This paper contributes to the literature by postulating that differentiated products may be subject to greater tariff evasion due to the difficulties associated with assessing their quality and price. Using product-level data on trade between Germany and 10 Eastern European countries during 1992-2003, the authors find empirical support for this hypothesis. They show that the trade gap, defined as the discrepancy between the value of exports reported by Germany and the value of imports from Germany reported by the importing country, is positively related to the level of tariff in 8 out of 10 countries. Further, the authors show that the responsiveness of the trade gap to the tariff level is greater for differentiated products than for homogeneous goods. A one-percentage-point increase in the tariff rate is associated with a 0.6 percent increase in the trade gap in the case of homogeneous products and a 2.1 percent increase in the case of differentiated products. Finally, the data indicate that greater tariff evasion observed for differentiated products tends to take place through misrepresentation of the import prices.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2007/02/7351724/differentiated-products-evasion-import-tariffs
dc.identifierhttps://hdl.handle.net/10986/7126
dc.identifierhttps://doi.org/10.1596/1813-9450-4123
dc.identifier.urihttp://hdl.handle.net/123456789/416142
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper; No. 4123
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectAVERAGE TARIFF
dc.subjectAVERAGE TRADE
dc.subjectBILATERAL TRADE
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCOMMODITIES
dc.subjectCOUNTRY TARIFF
dc.subjectCUSTOMS CLEARANCE
dc.subjectCUSTOMS CLEARANCE PROCEDURES
dc.subjectDIFFERENTIATED GOODS
dc.subjectEXPORT _ QUANTITY
dc.subjectEXPORT PRICES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN SUPPLIERS
dc.subjectHIGH TARIFF PRODUCTS
dc.subjectHOME MARKET
dc.subjectIMPORT DUTIES
dc.subjectIMPORT DUTY
dc.subjectIMPORT PRICES
dc.subjectIMPORT TARIFFS
dc.subjectINTERNATIONAL AGREEMENTS
dc.subjectPOLITICAL ECONOMY
dc.subjectPREFERENTIAL TARIFF
dc.subjectPREFERENTIAL TRADE
dc.subjectPREFERENTIAL TRADE AGREEMENTS
dc.subjectPRICE OF IMPORTS
dc.subjectPRICED
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectTARIFF BARRIERS
dc.subjectTARIFF DATA
dc.subjectTARIFF LEVELS
dc.subjectTARIFF RATE
dc.subjectTARIFF RATES
dc.subjectTARIFF STRUCTURE
dc.subjectTRADE DATA
dc.subjectTRADE FLOWS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE RELATIONSHIPS
dc.subjectTRADING PARTNER
dc.subjectTRANSPORT COSTS
dc.subjectVALUE OF EXPORTS
dc.subjectVALUE OF IMPORTS
dc.subjectWHOLESALERS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectZERO TARIFF
dc.subjectZERO TARIFFS
dc.titleDifferentiated Products and Evasion of Import Tariffs

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