Export tax and import-tariff avoidance: evidence from the trade data discrepancy in the China-New Zealand trade

References

• Aktaş, Z., Aldan, A., & Özmen, M. U. (2014). Import surveillance and over-invoicing imports: The case of Turkey. Journal of Economic Policy Reform, 17, 360–373. doi: 10.1080/17487870.2014.929004
   Web of Science ®Google Scholar
• Bannister, G., Ghazanchyan, M., & Bikoi, T. P. (2017). LAO P.D.R.: Assessing the quality of trade statistics. IMF Working Paper WP/17/251.
   Google Scholar
• Barclay, S. (2012). Hong Kong – The gateway to China. Sydney, AUS: Hong Kong Economic and Trade Office. Retrieved from https://www.tpk.govt.nz/docs/steve-barclay.pdf
   Google Scholar
• Benita, F., & Urzúa, C. M. (2016). Mirror trade statistics between China and Latin America. Journal of Chinese Economic and Foreign Trade Studies, 9(3), 177–189. doi: 10.1108/JCEFTS-10-2016-032
   Web of Science ®Google Scholar
• Berger, H., & Nitsch, V. (2012). Gotcha! A profile of smuggling in international trade. In C. C. Storti & P. De Grauwe (Eds.), Illicit trade and the global economy (pp. 49–72). Cambridge, MA: MIT Press.
   Google Scholar
• Bhagwati, J. (1964). On the underinvoicing of imports. Bulletin of the Oxford University Institute of Economics and Statistics, 27, 389–397. doi: 10.1111/j.1468-0084.1964.mp27004007.x
   Google Scholar
• Bhagwati, J. (1967). Fiscal policies, the faking of foreign trade declarations, and the balance of payments. Bulletin of the Oxford University Institute of Economics and Statistics, 29, 61–77. doi: 10.1111/j.1468-0084.1967.mp29001004.x
   Web of Science ®Google Scholar
• Buehn, A., & Eichler, S. (2011). Trade misinvoicing: The dark side of world trade. The World Economy, 34(8), 1263–1287. doi: 10.1111/j.1467-9701.2011.01375.x
   Web of Science ®Google Scholar
• Chandra, P., & Long, C. (2013). VAT rebates and export performance in China: Firm-level evidence. Journal of Public Economics, 102, 13–22. doi: 10.1016/j.jpubeco.2013.03.005
   Web of Science ®Google Scholar
• Dalziel, L. (2003). Decisions on post 2005 tariffs. Wellington, NZ: The New Zealand Government. Retrieved from https://www.beehive.govt.nz/release/decisions-post-2005-tariffs
   Google Scholar
• De Wulf, L. (1981). Statistical analysis of under- and overinvoicing of imports. Journal of Development Economics, 8, 303–323. doi: 10.1016/0304-3878(81)90018-3
   Web of Science ®Google Scholar
• Eden, L. (2012). Transfer price manipulation. In P. Reuter (Ed.), Draining development? (pp. 205–234). Washington, DC: World Bank.
   Google Scholar
• Ferrantino, M., Liu, X., & Wang, Z. (2012). Evasion behaviors of exporters and importers: Evidence from the U.S.–China trade data discrepancy. Journal of International Economics, 86, 141–157. doi: 10.1016/j.jinteco.2011.08.006
   Web of Science ®Google Scholar
• Ferrantino, M., & Wang, Z. (2008). Accounting for discrepancies in bilateral trade: The case of China, Hong Kong, and the United States. China Economic Review, 19, 502–520. doi: 10.1016/j.chieco.2008.02.002
   Web of Science ®Google Scholar
• Fisman, R., & Wei, S.-J. (2004). Tax rates and Tax evasion: Evidence from “missing imports” in China. Journal of Political Economy, 112(2), 471–496. doi: 10.1086/381476
   Web of Science ®Google Scholar
• Fisman, R., & Wei, S.-J. (2009). The smuggling of art, and the art of smuggling: Uncovering the illicit trade in cultural property and antiques. American Economic Journal, 1, 82–96.
   Google Scholar
• Fung, H.-G., Yau, J., & Zhang, G. (2011). Reported trade figure discrepancy, regulatory arbitrage, and round-tripping: Evidence from the China-Hong Kong trade data. Journal of International Business Studies, 42(1), 152–176. doi: 10.1057/jibs.2010.35
   Web of Science ®Google Scholar
• Hong, K. P., & Pak, S. J. (2017). Estimating trade misinvoicing from bilateral trade statistics: The devil is in the details. The International Trade Journal, 31, 3–28. doi: 10.1080/08853908.2016.1202160
   Google Scholar
• Javorcik, B. S., & Narciso, G. (2008). Differentiated products and evasion of import tariffs. Journal of International Economics, 76, 208–222. doi: 10.1016/j.jinteco.2008.07.002
   Web of Science ®Google Scholar
• Jones, N. (2016, April 9). Illicit drug trade worth $245 m in tax, social harm study suggests. The NZ Herald. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11619321
   Google Scholar
• Kellenberg, D., & Levinson, A. (2016). Misreporting trade: Tariff evasion, corruption, and auditing standards. NBER Working Paper No. 22593.
   Google Scholar
• Keller, W., Li, B., & Shiue, C. H. (2011). China’s Foreign trade: Perspectives from the past 150 years. The World Economy, 34(6), 853–892. doi: 10.1111/j.1467-9701.2011.01358.x
   Web of Science ®Google Scholar
• Lin, J. Z. (2004). Evaluating the VAT in China. International Tax Journal, 30, 65–81.
   Google Scholar
• Liu, X., Shi, H., & Ferrantino, M. (2016). Tax evasion through trade intermediation: Evidence from Chinese exporters. International Review of Economics and Finance, 42, 518–535. doi: 10.1016/j.iref.2015.10.022
   Web of Science ®Google Scholar
• Martin, M. (2013). What’s the difference? – Comparing U.S. And Chinese trade data. Current Politics and Economics of Northern and Western Asia, 22, 451–460.
   Google Scholar
• McDonald, D. C. (1985). Trade data discrepancies and the incentive to smuggle: An empirical analysis. Staff Papers – International Monetary Fund, 32, 668–692. doi: 10.2307/3866743
   Google Scholar
• Ministry of Foreign Affairs and Trade. (2008). Free trade agreement between the Government of New Zealand and the Government of the People’s Republic of China. Retrieved from https://www.mfat.govt.nz/assets/FTAs-agreements-in-force/China-FTA/NZ-ChinaFTA-Agreement-text.pdf
   Google Scholar
• Moneta, C. (1959). The estimation of transportation costs in international trade. Journal of Political Economy, 67(1), 41–58. doi: 10.1086/258129
   Web of Science ®Google Scholar
• Morgenstern, O. (1974). On the accuracy of economic observations: Foreign trade statistics. In J. N. Bhagwati (Ed.), Illegal transactions in international trade (pp. 87–122). Amsterdam: North-Holland.
   Google Scholar
• New Zealand Drug Foundation. (n.d.). Drug use in NZ. Retrieved from https://www.drugfoundation.org.nz/policy-and-advocacy/drugs-in-nz/
   Google Scholar
• Nitsch, V. (2017). Trade Misinvoicing in Developing Countries. CGD Policy Paper 103. Washington, DC: Center for Global Development.
   Google Scholar
• Olsevskaja, D. (2013). Trade mispricing and misreporting: A study of China’s foreign trade 1998–2009 (Master’s thesis). University of Oslo, Norway. Retrieved from DUO Research Archive: https://www.duo.uio.no/bitstream/handle/10852/34591/olsevskajadarja.pdf?sequence=2&isAllowed=y
   Google Scholar
• Patnaik, I., Sen Gupta, A., & Shah, A. (2012). Determinants of trade misinvoicing. Open Economies Review, 23, 891–910. doi: 10.1007/s11079-011-9214-4
   Web of Science ®Google Scholar
• Rauch, J. (1999). Networks versus markets in international trade. Journal of International Economics, 48, 7–35. doi: 10.1016/S0022-1996(98)00009-9
   Web of Science ®Google Scholar
• Rozanski, J., & Yeats, A. (1994). On the (in)accuracy of economic observations: An assessment of trends in the reliability of international trade statistics. Journal of Development Economics, 44, 103–130. doi: 10.1016/0304-3878(94)00008-5
   Web of Science ®Google Scholar
• Stoyanov, A. (2012). Tariff evasion and rules of origin violations under the Canada-U.S. Free trade agreement. Canadian Journal of Economics/Revue Canadienne D'économique, 45, 879–902. doi: 10.1111/j.1540-5982.2012.01719.x
   Web of Science ®Google Scholar
• United Nations. (2010). International merchandise trade statistics – Concepts and definitions 2010. Department of Economic and Social Affairs, Statistics Division, Statistical Paper Series M, No 52.
   Google Scholar
• United Nations. (2015). COMTRADE database.
   Google Scholar