Outsourcing tariff evasion
a new explanation for entrepot trade
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Author
Contributions
- Moustakerski, Peter. - Contributor
- Wei, Shang-Jin. - Contributor
- National Bureau of Economic Research. - Contributor
Publication
2007 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts
Language
English
Word Count
4,750 words, Guess
Page Count
19 pages
Identifiers
- OCLC Control Number77750659
- Open LibraryOL17632328M
Description
"Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypotheses based on existing explanations for entrepot trade"--National Bureau of Economic Research web site.
Subjects
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- Outsourcing tariff evasion
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