In this paper we combine the tariff evasion analysis of Fisman and Wei (2004) with Rauch and Trindade's (2002) study of Chinese trade networks. Chinese networks are known to act as trade catalysts by enforcing contracts and providing market information. As tariff evasion occurs outside the law,...

This paper estimates trade barriers in government procurement, a market that accounts for 12 percent of world GDP. Using data from inter-country input-output tables in a gravity model, the paper finds that home bias in government procurement is significantly higher than in trade between firms....