Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/26442 
Year of Publication: 
2008
Series/Report no.: 
CESifo Working Paper No. 2397
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
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.
Subjects: 
Smuggling
structural equation model
Iran
illegal trade
JEL: 
O17
C39
H26
Document Type: 
Working Paper
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