Trade Misreporting: A Case of Zimbabwe Foreign Trade

Theoretically it is presumed that Zimbabwe’s exports to Malawi should be the same as Malawi’s imports from Zimbabwe. However, if we look at the data reported by the two countries, we find shocking dispersion. In principle, the two reported trade values should differ systematically only by transport costs, because the values reported by importersinclude freight and insurance. These double reports provide an opportunity for audit. This paper presents a methodology to measure misreported trade in...
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