Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298069 
Year of Publication: 
2024
Series/Report no.: 
WIDER Working Paper No. 2024/19
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
Cross-border traders face a choice between official and unofficial border crossings. The latter allow them to evade taxes, but expose them to other risks, such as bribes, fines, and arrest. We investigate the perceptions of cross-border traders about the risks of trading officially vs unofficially at the border between Kenya and Uganda. We find that traders overestimate the risks of trading officially relative to the same risks when trading unofficially. In reality, the measured risks of trading through the official border are lower.
Subjects: 
cross-border trade
formality
informality
beliefs
corruption
JEL: 
D73
F13
H26
Q17
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-477-9
Document Type: 
Working Paper

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