{
  "title": "Outsourcing Tariff Evasion: A New Explanation for Entrepôt Trade",
  "publication": "IMF Working Papers, May 1, 2005",
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  "summary": "Traditional explanations for indirect trade carried out through an entrepôt 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 entrepôts may facilitate tariff evasion.",
  "sections": [
    {
      "heading": "Summary and Research Question",
      "content": "- Traditional explanations for indirect trade via an entrepôt focus on savings in transport costs and on the role of specialized agents in processing and distribution.\n- This paper provides an alternative perspective: entrepôts may facilitate tariff evasion.\n- Empirical focus: comparison of direct exports to mainland China and indirect exports to mainland China via Hong Kong SAR."
    },
    {
      "heading": "Key Findings",
      "content": "- The indirect export rate rises with the Chinese tariff rate.\n- This relationship holds despite there being no legal tax advantage to sending goods via Hong Kong SAR.\n- Authors conduct a number of extensions to rule out plausible alternative hypotheses."
    },
    {
      "heading": "Data and Scope",
      "content": "- Empirical comparison uses data on:\n  - Direct exports to mainland China.\n  - Indirect exports to mainland China via Hong Kong SAR.\n- Publication Details:\n  - Pages: 18\n  - Volume: 2005\n  - Issue: 102\n  - Series: Working Paper No. 2005/102\n  - DOI: https://doi.org/10.5089/9781451861211.001\n  - Stock No: WPIEA2005102\n  - ISBN: 9781451861211\n  - ISSN: 1018-5941\n  - Publication date on landing page: May 1, 2005"
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subject: Demand elasticity, Exports, Imports, Tariffs, Tax evasion\n- Keywords: tariff rate, WP"
    },
    {
      "heading": "Implications and Extensions",
      "content": "- Policy-relevant implication: higher tariff rates are associated with greater use of indirect routes (entrepôts), suggesting a channel for tariff evasion.\n- Robustness: the paper undertakes multiple extensions to exclude alternative explanations for the observed pattern.\n\nSource: Outsourcing Tariff Evasion: A New Explanation for Entrepôt Trade, IMF Working Papers, Working Paper No. 2005/102 (May 1, 2005).\n\n---\n\n Content in this bundle\n\n- wp05102\n  - wp05102 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp05102 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/outsourcing-tariff-evasion-a-new-explanation-for-entrep%c3%b4t-trade-18202"
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    "Published: May 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451861211.001",
    "Traditional explanations for indirect trade via an entrepôt focus on savings in transport costs and on the role of specialized agents in processing and distribution.",
    "This paper provides an alternative perspective: entrepôts may facilitate tariff evasion.",
    "Empirical focus: comparison of direct exports to mainland China and indirect exports to mainland China via Hong Kong SAR.",
    "The indirect export rate rises with the Chinese tariff rate.",
    "This relationship holds despite there being no legal tax advantage to sending goods via Hong Kong SAR.",
    "Authors conduct a number of extensions to rule out plausible alternative hypotheses.",
    "Empirical comparison uses data on:",
    "Publication Details:",
    "Subject: Demand elasticity, Exports, Imports, Tariffs, Tax evasion",
    "Keywords: tariff rate, WP",
    "Policy-relevant implication: higher tariff rates are associated with greater use of indirect routes (entrepôts), suggesting a channel for tariff evasion.",
    "Robustness: the paper undertakes multiple extensions to exclude alternative explanations for the observed pattern.",
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