Outsourcing tariff evasion
Subtitle: a new explanation for entrepot trade
By: Raymond Fisman, Peter Moustakerski, Shang-Jin Wei.
Contributors: Fisman, Raymond.; Moustakerski, Peter.; Shang-Jin Wei.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 12818; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12818.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
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.
Notes: Title from PDF file as viewed on 3/22/2007.

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