THE DETERMINANTS OF CUSTOMS DUTIES EVASION IN EGYPT

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Abstract

Following the Arab Spring in 2011, Egypt implemented policies to restrict imports to control foreign currency spending, as foreign currency reserves dwindled. This decline was driven by reduced tourism revenues and remittances from Egyptians abroad. Among the measures Egypt adopted were floating the local currency, raising the customs exchange rate (used to calculate customs duties), and increasing tariff rates on numerous goods. These actions significantly raised the cost of imports, potentially incentivizing importers to evade customs duties. This study aims to explore the determinants of customs duties evasion in Egypt using a time series econometric model. Key variables analyzed include tariff rates, customs clearance efficiency, corruption, trade openness, and non-tariff barriers (NTBs). The analysis covers the period from 2001 to 2023. Regression analysis and econometric tests were conducted to validate the results.

Original languageEnglish
Pages (from-to)93-109
Number of pages17
JournalECONOMICS - Innovative and Economics Research Journal
Volume13
Issue number1
DOIs
StatePublished - 1 Mar 2025

Keywords

  • Average tariff rate
  • Customs duties evasion
  • Imports
  • Tax revenues

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