Trade misreporting: exchange rate movements and tariff evasion by firms.

This study examines misreporting behaviour of firms engaged in international trade. Using detailed administrative data covering the universe of import transactions in Pakistan, we analyse how exchange rate movements interact with the incentive to under-invoice imports to evade tariffs. We use the sh...

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Publicado en:Oxford Economic Papers Vol. 78; no. 3; pp. 665 - 687
Autores principales: Liaqat, Zara, Hussain, Karrar
Formato: Artículo
Publicado: Oxford University Press / USA Jul2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Trade misreporting: exchange rate movements and tariff evasion by firms.
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        au:
          Liaqat, Zara
          Hussain, Karrar
        affil:
          Department of Economics, Lazaridis Hall 2019, Wilfrid Laurier University, 75 University Avenue West, Waterloo, ON N2L3C5, Canada
          Economics Department, American University in Bulgaria, 1 Georgi Izmirliev Sq, 2700 Blagoevgrad, Bulgaria
      su:
        Pakistan
        United Kingdom
        International trade
        Foreign exchange rates
        Taxpayer compliance
        Commercial statistics
        Invoices
        Brexit Referendum, 2016
      sug:
        subj:
          International trade
          Pakistan
          United Kingdom
          International Trade Financing
          Foreign exchange rates
          Taxpayer compliance
          Commercial statistics
          Invoices
          Brexit Referendum, 2016
      keyword:
        Brexit
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        exchange rate
        F1
        F13
        F14
        H26
        inLanguage:en
        misdeclaration
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/oep/gpag011
        tax evasion
        transaction-level data
        Brexit
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        exchange rate
        F1
        F13
        F14
        H26
        inLanguage:en
        misdeclaration
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/oep/gpag011
        tax evasion
        transaction-level data
      ab: This study examines misreporting behaviour of firms engaged in international trade. Using detailed administrative data covering the universe of import transactions in Pakistan, we analyse how exchange rate movements interact with the incentive to under-invoice imports to evade tariffs. We use the sharp depreciation of the British pound (GBP) following the unanticipated outcome of the Brexit referendum as a quasi-natural experiment and document a statistically significant decline in misreporting of imports sourced from the UK relative to other origins. An appreciation of the Pakistani rupee against the pound lowered the financial gain from under-invoicing UK imports, prompting firms to report more accurately, particularly for high-tariff products and GBP-denominated transactions. Our findings indicate that tariff evasion is the key underlying mechanism, and we offer policy implications for improving tax compliance and the reliability of official trade statistics.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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