TY - BOOK ID - 84541526 TI - Outsourcing Tariff Evasion : A New Explanation for Entrepôt Trade. PY - 2005 SN - 1462333699 1452763283 1283516276 9786613828729 1451906579 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Electronic books. -- local. KW - Entrepôt trade. KW - Tax evasion. KW - Exports and Imports KW - Taxation KW - Economic Theory KW - Trade Policy KW - International Trade Organizations KW - Trade: General KW - Tax Evasion and Avoidance KW - Agriculture: Aggregate Supply and Demand Analysis KW - Prices KW - Public finance & taxation KW - International economics KW - Economic theory & philosophy KW - Tariffs KW - Exports KW - Imports KW - Tax evasion KW - Demand elasticity KW - Tariff KW - Elasticity KW - Economics KW - Hong Kong Special Administrative Region, People's Republic of China KW - Entrepot trade. UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541526 AB - 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. Using data on direct exports to mainland China and indirect exports to it via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypotheses. ER -