@article {Buehn:2012:0003-6846:3047,
	author = "Buehn, Andreas and Farzanegan, Mohammad Reza",
	title = "Smuggling around the world: evidence from a structural equation model",
	journal = "Applied Economics",
	volume = "44",
	number = "23",
	year = "2012",
	abstract = "This article uses a Multiple Indicators Multiple Causes (MIMIC) model to analyse the determinants of smuggling. The analysis reveals that higher corruption and a lower rule of law encourage smuggling. Tariffs and trade restrictions are important push factors, while a higher Black Market Premium (BMP) discourages smugglers. Based on the MIMIC estimates, we calculate an index of smuggling which provides a ranking for 54 countries. We find that smuggling is rampant in Cameroon, Pakistan and Kenya while it is least prevalent in Switzerland, Finland and Sweden.",
	pages = "3047-3064",
	url = "http://www.ingentaconnect.com/content/routledg/raef/2012/00000044/00000023/art00009",
	doi = "doi:10.1080/00036846.2011.570715",
	keyword = "smuggling, illegal trade, tax burden, corruption, MIMIC models, O17, H26, C31, H71, K42"
}