Buehn, Andreas; Farzanegan, Mohammad Reza - In: Applied Economics 44 (2012) 23, pp. 3047-3064
This article uses a Multiple Indicators Multiple Causes (MIMIC) model to analyse the determinants of smuggling. The analysis reveals that higher corruption and a lower rule of law encourage smuggling. Tariffs and trade restrictions are important push factors, while a higher Black Market Premium...