[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/pje/journl/articlei.html
   My bibliography  Save this article

Measurement Of Import Smuggling In Pakistan

Author

Listed:
  • Rafat MAHMOOD
  • Eatzaz AHMAD
Abstract
The study measures an overall import smuggling in Pakistan, using Monetary Approach covering the period from fiscal years 1973 to 2010. The results show a rising trend in import smuggling as a percentage of imports in the early period of analysis but it declines afterwards. The main factor responsible for such a trend is trade restrictions; the tariffs and other import restrictions were imposed in 1970s through mid- 1980s and were relaxed later. The study paves the way for further research in this avenue by employing new approach for measurement of import smuggling in Pakistan.

Suggested Citation

  • Rafat MAHMOOD & Eatzaz AHMAD, 2015. "Measurement Of Import Smuggling In Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 25(2), pages 135-159.
  • Handle: RePEc:pje:journl:articlei
    as

    Download full text from publisher

    File URL: http://aerc.edu.pk/wp-content/uploads/2016/10/Paper-652-I-Rafat-Mahmood.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Helge Berger & Volker Nitsch, 2008. "Gotcha! A Profile of Smuggling in International Trade," DEGIT Conference Papers c013_026, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. M. Ali Kemal, 2007. "A Fresh Assessment of the Underground Economy and Tax Evasion in Pakistan : Causes, Consequences, and Linkages with the Formal Economy," Microeconomics Working Papers 22200, East Asian Bureau of Economic Research.
    3. Yeats, Alexander J, 1990. "On the Accuracy of Economic Observations: Do Sub-Saharan Trade Statistics Mean Anything?," The World Bank Economic Review, World Bank, vol. 4(2), pages 135-156, May.
    4. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    5. Donogh C. McDonald, 1985. "Trade Data Discrepancies and the Incentive to Smuggle: An Empirical Analysis (Divergences dans les données sur les échanges commerciaux et attrait de la contrebande: analyse empirique) (Discrepancia," IMF Staff Papers, Palgrave Macmillan, vol. 32(4), pages 668-692, December.
    6. Raymond Fisman & Shang-Jin Wei, 2009. "The Smuggling of Art, and the Art of Smuggling: Uncovering the Illicit Trade in Cultural Property and Antiques," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 82-96, July.
    7. Raymond Fisman & Shang-Jin Wei, 2004. "Tax Rates and Tax Evasion: Evidence from "Missing Imports" in China," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 471-500, April.
    8. Jagdish Bhagwati & Bent Hansen, 1973. "A Theoretical Analysis of Smuggling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(2), pages 172-187.
    9. Arby, Muhammad Farooq & Malik, Muhammad Jahanzeb & Hanif, Muhammad Nadim, 2010. "The size of informal economy in Pakistan," MPRA Paper 22617, University Library of Munich, Germany.
    10. Scott Fausti, 1997. "Joint-Product Export Smuggling and Export Tax Policy," Open Economies Review, Springer, vol. 8(1), pages 51-69, January.
    11. Mr. Jian-Ye Wang, 1994. "Macroeconomic Policies and Smuggling: An Analysis of Illegal Oil Trade in Nigeria," IMF Working Papers 1994/115, International Monetary Fund.
    12. Sheikh, Munir A., 1974. "Smuggling, production and welfare," Journal of International Economics, Elsevier, vol. 4(4), pages 355-364, November.
    13. Muhammad Arshad Khan & Abdul Qayyum, 2007. "Trade Liberalisation, Financial Development and Economic Growth," Trade Working Papers 22204, East Asian Bureau of Economic Research.
    14. Zafar Mahmood & Mohammad Azhar, 2001. "On Overinvoicing of Exports in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(3), pages 173-185.
    15. Mehnaz Ahmed & Qazi Masood Ahmed, 1995. "Estimation of the Black Economy of Pakistan through the Monetary Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 791-807.
    16. Sheikh, Munir A, 1974. "Underinvoicing of Imports in Pakistan," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 36(4), pages 287-296, November.
    17. Martin, Lawrence & Panagariya, Arvind, 1984. "Smuggling, trade, and price disparity: A crime-theoretic approach," Journal of International Economics, Elsevier, vol. 17(3-4), pages 201-217, November.
    18. Pitt, Mark M., 1981. "Smuggling and price disparity," Journal of International Economics, Elsevier, vol. 11(4), pages 447-458, November.
    19. Zafar Mahmood, 1997. "Research note: Determinants of under-invoicing of imports in Pakistan," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(1), pages 85-96.
    20. Connely, Michael & Devereux, John & Cortes, Mariluz, 1995. "The transhipment problem: Smuggling and welfare in Paraguay," World Development, Elsevier, vol. 23(6), pages 975-985, June.
    21. Biswas, Amit K. & Marjit, Sugata, 2007. "Preferential trade and mis-invoicing: Some analytical implications," International Review of Economics & Finance, Elsevier, vol. 16(1), pages 130-138.
    22. Munir Sheikh, 1977. "A partial equilibrium model of smuggling," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 113(2), pages 268-283, June.
    23. Sanjib Pohit & Nisha Taneja, 2003. "India's Informal Trade with Bangladesh: A Qualitative Assessment," The World Economy, Wiley Blackwell, vol. 26(8), pages 1187-1214, August.
    24. Amit K. Biswas & Sarbajit Sengupta, 2011. "Tariffs And Imports Misinvoicing Under Oligopoly," Economics and Politics, Wiley Blackwell, vol. 23(2), pages 254-270, July.
    25. Bushra Yasmin & Hira Rauf, 2004. "Measuring the Underground Economy and its Impact on the Economy of Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 9(2), pages 93-103, Jul-Dec.
    26. repec:bla:econom:v:55:y:1988:i:217:p:107-18 is not listed on IDEAS
    27. Zafar Iqbal & Sarfraz Khan Qureshi & Riaz Mahmood, 1998. "The Underground Economy and Tax Evasion in Pakistan. A Fresh Assessment," PIDE-Working Papers 1998:158, Pakistan Institute of Development Economics.
    28. Amit Biswas & Sugata Marjit, 2005. "Mis-invoicing and Trade Policy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 8(3), pages 189-205.
    29. Rodney E. Falvey, 1978. "A Note on Preferential and Illegal Trade Under Quantitative Restrictions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(1), pages 175-178.
    30. Nabi, Ijaz, 1997. "Outward orientation of the economy: A review of Pakistan's evolving trade and exchange rate policy," Journal of Asian Economics, Elsevier, vol. 8(1), pages 143-163.
    31. Edsel L. Beja, 2008. "Estimating Trade Mis‐invoicing from China: 2000–2005," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(2), pages 82-92, March.
    32. Mr. Ghiath Shabsigh, 1995. "The Underground Economy: Estimation, and Economic and Policy Implications: The Case of Pakistan," IMF Working Papers 1995/101, International Monetary Fund.
    33. Salman Aslam, 1998. "The Underground Economy and Tax Evasion in Pakistan: Annual Estimates (1960-1998) and the Impact of Dollarisation of the Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 621-631.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Buehn & Mohammad Reza Farzanegan, 2012. "Smuggling around the world: evidence from a structural equation model," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 3047-3064, August.
    2. Farzanegan, Mohammad Reza, 2009. "Illegal trade in the Iranian economy: Evidence from a structural model," European Journal of Political Economy, Elsevier, vol. 25(4), pages 489-507, December.
    3. Ahmed Gulzar & Novaira Junaid & Adnan Haider, 2010. "What is Hidden in the Hidden Economy of Pakistan? Size, Causes, Issues, and Implications," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 665-704.
    4. Misbah Kiani & Adeel Ahmed & Khalid Zaman, 2015. "Combining qualitative and quantitative approaches for measuring underground economy of Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 295-317, January.
    5. Omar Ashraf & M. Ali Kemal, 2019. "Exploring the Determinants of Underground Economy of Pakistan," PIDE-Working Papers 2019:163, Pakistan Institute of Development Economics.
    6. Khurrum S. Mughal & Friedrich G. Schneider, 2020. "How Informal Sector Affects the Formal Economy in Pakistan? A Lesson for Developing Countries," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(1), pages 7-21, June.
    7. Mughal, Khurrum & Schneider, Friedrich, 2018. "Shadow Economy in Pakistan: Its Size and Interaction with Official Economy," MPRA Paper 87087, University Library of Munich, Germany.
    8. Khurrum S. Mughal & Friedrich G. Schneider & Zafar Hayat, 2020. "Intensity of Regulations as a Cause of the Informal Sector," Journal of South Asian Development, , vol. 15(2), pages 135-154, August.
    9. Saeed Karimi Petanlar & Ahmad Jafari Samimi & Alireza Aminkhaki, 2011. "An Estimation of Tax Evasion in Iran," Journal of Economics and Behavioral Studies, AMH International, vol. 3(1), pages 8-12.
    10. Connely, Michael & Devereux, John & Cortes, Mariluz, 1995. "The transhipment problem: Smuggling and welfare in Paraguay," World Development, Elsevier, vol. 23(6), pages 975-985, June.
    11. Lahiri, Sajal & Nasim, Anjum & Ghani, Jawaid, 2000. "Optimal second-best tariffs on an intermediate input with particular reference to Pakistan," Journal of Development Economics, Elsevier, vol. 61(2), pages 393-416, April.
    12. Biswas, Amit K. & von Hagen, Jürgen & Sarkar, Sandip, 2022. "FDI Mismatch, trade Mis-reporting, and hidden capital Movements: The USA - China case," Journal of International Money and Finance, Elsevier, vol. 120(C).
    13. Tehseen Ahmed Qureshi & Zafar Mahmood, 2016. "The Magnitude of Trade Misinvoicing and Resulting Revenue Loss in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(2), pages 1-30, July-Dec.
    14. Yalta, A. Yasemin & Demir, Ishak, 2010. "The Extent of Trade Mis-Invoicing in Turkey: Did Post-1990 Policies Matter?," MPRA Paper 30186, University Library of Munich, Germany.
    15. Qureshi, Tehseen Ahmed & Mahmood, Zafar, 2015. "The Size of Trade Misinvoicing in Pakistan," MPRA Paper 65801, University Library of Munich, Germany.
    16. Dujava, Daniel & Siranova, Maria, 2022. "Is it me or you? A deeper insight into profile of misreporting economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 83(C), pages 10-25.
    17. Muhammad Farooq Arby & Muhammad Jahanzeb Malik & Muhammad Nadim Hanif, 2010. "The Size of Informal Economy in Pakistan," Working Papers id:2493, eSocialSciences.
    18. Temesgen Worku & Juan P. Mendoza & Jacco L. Wielhouwer, 2016. "Tariff evasion in sub-Saharan Africa: the influence of corruption in importing and exporting countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 741-761, August.
    19. Anastasiou Athanasios & Kalamara Eleni & Kalligosfyris Charalampos, 2020. "Estimation of the size of tax evasion in Greece," Bulletin of Applied Economics, Risk Market Journals, vol. 7(2), pages 97-107.
    20. M. Ali Kemal, 2007. "A Fresh Assessment of the Underground Economy and Tax Evasion in Pakistan : Causes, Consequences, and Linkages with the Formal Economy," Microeconomics Working Papers 22200, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    #;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pje:journl:articlei. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Samina Khalil (email available below). General contact details of provider: https://edirc.repec.org/data/aekarpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.