Customs face a difficult tradeoff between, on one side, collecting tariff revenues and preventing smuggling, and on the other side, avoiding creating additional barriers to trade. They also tend to concentrate discretionary power in the hands of officials whose decisions can bear high costs for...

We assess the effects of the computerization of import transactions in Colombia, on both activity at ports and the performance of manufacturing firms. The reform was expected to increase efficiency and reduce corruption at ports. We rely on its staggered implementation for identification. We...