Resource title

Illegal trade in the Iranian economy: evidence from a structural model

Resource image

image for OpenScout resource :: Illegal trade in the Iranian economy: evidence from a structural model

Resource description

This study investigates the main causes and consequences of import and export smuggling and estimates the relative index of smuggling in Iran from 1970 to 2002. The Multiple Indicators - Multiple Causes (MIMIC) econometric modelling is used for a comprehensive analysis of the latent variable of smuggling. The main results of this paper indicate that the rate of fine for smuggling and the general level of education reduce smuggling, while the tariff burden increases the incentives for illegal trade. More trade openness accompanies more illegal trade for the case of Iran. On average, the relative size of smuggling is about 13% of the total trade in Iran. The absolute amount of smuggling per year is about USD3 billion.

Resource author

Mohammad Reza Farzanegan

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26442

Resource license

Adapt according to the presented license agreement and reference the original author.