Title : Smuggling and the Black Market Premium

Authors : Gour Gobinda Goswami, M. Bahmani-Oskooee

Abstract : Empirical studies pertaining to the impact of smuggling on the black mar - ket premium (BMP) are very rare in the literature. This paper adds to the literature on the relation between smuggling and the black market premium in the foreign exchange market by pooling data from 70 countries over the period 1956-98 in an unbalanced panel framework. Using tariff as a proxy for smuggling into a country and controlling for other macroeconomic variables, our results strongly support the notion that smuggling leads to high BMP in the foreign exchange market supporting the theoretical literature.

Journal : Scientific Journal of Administrative Development Volume : 1 Year : 2003 Issue :
Pages : 95-111 City : Edition : Editors :
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