Smuggling around the world: evidence from a structural equation model

C-Tier
Journal: Applied Economics
Year: 2012
Volume: 44
Issue: 23
Pages: 3047-3064

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article uses a Multiple Indicators Multiple Causes (MIMIC) model to analyse the determinants of smuggling. The analysis reveals that higher corruption and a lower rule of law encourage smuggling. Tariffs and trade restrictions are important push factors, while a higher Black Market Premium (BMP) discourages smugglers. Based on the MIMIC estimates, we calculate an index of smuggling which provides a ranking for 54 countries. We find that smuggling is rampant in Cameroon, Pakistan and Kenya while it is least prevalent in Switzerland, Finland and Sweden.

Technical Details

RePEc Handle
repec:taf:applec:44:y:2012:i:23:p:3047-3064
Journal Field
General
Author Count
2
Added to Database
2026-01-25