Growth effect of trade misinvoicing in Sub-Saharan Africa: the role of governance

Q2 Social Sciences

International Journal of Development Issues Pub Date : 2023-05-02 DOI:10.1108/ijdi-01-2023-0004

M. Babatunde, J. Afolabi

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引用次数: 1

Abstract

Purpose The growing volume of trade misinvoicing in Sub-Saharan Africa (SSA) calls for serious concern, particularly given its effect on macroeconomic fundamentals. Despite the growing body of literature on the growth effect of trade misinvoicing, empirical evidence on the role of governance in moderating the effect is quite scarce, particularly for SSA. The purpose of this paper is to provide insights into the growth effect of trade misinvoicing in SSA as well as the moderating role of governance in this regard. Design/methodology/approach The feasible generalised least square estimator was applied to analyse relevant data, spanning 2009–2018, of 35 SSA countries. Governance indicators were classified into economic, political and institutional governance, and their individual role in moderating the nexus between trade misinvoicing and economic growth was explored. Findings This paper showed the presence of cross-sectional dependence among SSA countries and long-run convergence of the estimated variables. The empirical finding showed that trade misinvoicing has a negative growth effect in the selected SSA countries, but both economic and political governance are crucial in lowering the observed negative growth effect. Practical implications To curtail trade misinvoicing, SSA policymakers should go beyond just designing anti-money laundering policies to effectively implementing the policies for improved growth prospects. More so, the government of each SSA country must devise means of strengthening governance and building effective, accountable and transparent institutional frameworks that will constantly check and discourage trade misinvoicing activities. Originality/value The originality of this paper stems from its novel assessment of the role governance plays in moderating the growth effect of trade misinvoicing in SSA using the feasible generalised least square estimator. It also details the strategies needed to effectively tackle trade misinvoicing.

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撒哈拉以南非洲贸易误报的增长效应：治理的作用

目的撒哈拉以南非洲（SSA）不断增长的贸易误报引起了人们的严重关注，特别是考虑到其对宏观经济基本面的影响。尽管关于贸易虚假言论的增长效应的文献越来越多，但关于治理在调节这种效应中的作用的实证证据却相当缺乏，尤其是对SSA而言。本文的目的是深入了解SSA中贸易误报的增长效应，以及治理在这方面的调节作用。设计/方法/方法应用可行的广义最小二乘估计量分析了35个SSA国家2009-2018年的相关数据。治理指标分为经济治理、政治治理和机构治理，并探讨了它们在调节贸易误报与经济增长之间关系方面的个人作用。研究结果表明，SSA国家之间存在横截面依赖性，估计变量存在长期收敛性。实证结果表明，贸易误报在选定的撒哈拉以南非洲国家具有负增长效应，但经济和政治治理对于降低观察到的负增长效应至关重要。实际含义为了减少贸易误报，SSA政策制定者应该不仅仅是设计反洗钱政策，而是有效实施改善增长前景的政策。更重要的是，每个SSA国家的政府都必须制定手段来加强治理，建立有效、负责和透明的体制框架，不断检查和阻止贸易虚假言论活动。独创性/价值本文的独创性源于它使用可行的广义最小二乘估计量对治理在调节SSA中贸易误报的增长效应中所起的作用进行了新颖的评估。它还详细介绍了有效解决贸易误报问题所需的战略。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Development Issues Social Sciences-Political Science and International Relations

CiteScore

2.90

自引率

0.00%

发文量

期刊介绍： The International Journal of Development Issues (IJDI) publishes scholarly research on important development issues, with a particular focus on development dynamism and a leaning towards inter-disciplinary research. IJDI welcomes papers that are empirically oriented but such work should have solid methodological foundations based on realism and pragmatism rather than on idealism. Critical analysis of development issues from both the heteredox viewpoint and the neo-liberalist viewpoint, in orthodox tradition, are equally encouraged. The journal publishes authoritative, intelligent articles and research of direct relevance to those investigating and/or working within areas closely associated with development processes. Special consideration is given to research papers that consider development issues from either a socio-economic, political, historical or sociological, anthropological, ecological and technological standpoint.