Trade Misreporting: A Case of Zimbabwe Foreign Trade | Author : MBUDZI CRYLOW | Abstract | Full Text | Abstract :Theoretically, it is presumed that Zimbabwe’s exports to Malawi should be the same as Malawi’s imports from Zimbabwe. However, if we look at the data reported by the two countries, we find shocking dispersion. In principle, the two reported trade values should differ systematically only by transport costs, because the values reported by importers include freight and insurance. These double reports provide an opportunity for audit. This paper presents a methodology to measure misreported trade in a consistent way across countries and over time. The methodology does not require any assumptions about which countries may be more or less likely to misreport – rather, all indices are derived endogenously with available trade data. This study derived two specific indices which are exports and imports misreporting. Applying this method to existing bilateral trade data on the SITC 0+1+22+4 level from 2000-2016, the study was able to determine factors that cause misreported trade for Zimbabwe’s bilateral trade using the Feasible Generalized Least Squares (FGLS) method. As predicted by economic theory, case studies, and economic intuition, the study finds a significant correlation for tariff, corruption, gross domestic product rates, and foreign direct investment with import and export misreporting. The study recommends the reduction of misreporting after the application of policy to reduce tariff rates, implementation of the policy of increasing the maximum financial penalties and switching from exports of raw materials and semi-manufactured goods to high value-added goods. |
| Changing Occupational Structure of Workers in KBK Districts of Odisha | Author : Premananda Sethy | Abstract | Full Text | Abstract :This paper examines the changing structure of occupation in the KBK districts of Odisha based on secondary sources of data. The three districts under study of the KBK region were selected on the basis of the nature of the traditional backward, seasonal migratory, and tribal-dominated district of Odisha. The persistence of crop failure, low net irrigated area, lack of access to the basic utilities service and entitlements, starvation, malnutrition, and migration usually leading issues in these districts under study of backward KBK region of Odisha. Despite the fact that there is a remarkable change in the KBK region and state of Odisha that there is a significant shift of workers from agriculture to non-agricultural sector from census 2001 to census 2011 in general, but particularly from agricultural workers, only the cultivators declined but agricultural labour increased in the KBK districts of Odisha over time. This increase in agricultural labor has been an adverse effect on the livelihood pattern of the people in the KBK districts of Odisha because this region usually found in dry, drought, and non-irrigated areas. Most of the people in this region are very poor and they unable to sustain their livelihood because there is no employment opportunity of agricultural labor in the farm sector as well as the non-farm sector. Some workers are migrating to other places like Andhra Pradesh, Chennai, Gujarat etc during the lean season in order to get employment opportunities and earn mere income to sustain their livelihood. Besides, the migrant’s labor of this KBK region is also exploited and torture in the workplace. Now, face the problems of reverse migration during the period of COVID-19. Hence, the greater public spending in MGNREGA and another rural livelihood program could be important and suitable measures for the absorption of surplus agricultural workers in the rural area, which would lead to increase earning and sustain their livelihood by the labor supplying households. |
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