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Trade Policies and Trade Mis-reporting in Myanmar

Discussion Papers


February 2012


While the trade statistics of Myanmar show surpluses for 2007 through 2010, the corresponding statistics of trade partner countries indicate deficits. Such discrepancies in mirror trade statistics are analyzed in connection with the ‘export-first and import-second’ policy provisioning import permissions on permission applicants possessing a sufficient amount of the export-tax-deducted export earnings. Under this policy, the recorded imports and exports of the private sector have been maintaining equilibrium, whereas discrepancies in the mirror statistics have fluctuated. This suggests that traders adjusted mis-reporting in accordance with the supply and demand of the export earnings.

Keywords: Myanmar, Trade Policies, Mis-invoicing, Smuggling
JEL classification: F13, F14, K42, O17

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