On-the-match price renegotiation: Evidence from Pakistan’s import data

Liaqat, Zara; Hussain, Karrar; Khan, Bilal M.

doi:10.1016/j.econlet.2021.109837

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The Fbrp Data1

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2023

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“…In this paper, we use the data for imports collected by FBRP from 1 January 2016 to 31 December 2017. The dataset contains comprehensive information about the date of the transaction, product imported, country of origin, unit value of imports, and the total value and quantity imported (Liaqat et al, 2021; Liaqat & Hussain, 2020). For each transaction, we observe an identification code for the importer.…”

Section: The Fbrp Datamentioning

confidence: 99%

Trade misreporting: Evidence from Pakistani importers

Khan¹,

Hussain²,

Liaqat

2023

World Economy

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This paper provides direct evidence of attempted tax evasion in response to changes in tariff rates in a small open economy using transaction‐level customs data for Pakistani importers. Our results show that there exists a systematic relationship between the difference in declared and assessed import values of the shipment, and the duty rate charged to the importer. We demonstrate that higher duty rates are associated with a greater misdeclaration of imports. In particular, a one‐percentage point increase in duty rates, on average, is linked with 0.4% increase in under‐invoicing of imports by Pakistani firms. The study explores several dimensions to examine the variation in estimates obtained across product types, import origins, modes of processing import transactions and the role of firm characteristics, such as, frequency of imports, in determining the extent of misdeclaration.

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Section: The Fbrp Datamentioning

confidence: 99%