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Illicit Financial Flows in Export Operations with Agricultural Products
Type of publication
Straipsnis kitame recenzuojamame leidinyje / Article in other peer-reviewed edition (S5)
Type of publication (old)
S4
Author(s)
Kvasha, Serhii |
Pankratova, Liubov |
Koval, Viktor |
Tamošiūnienė, Rima |
Title
Illicit Financial Flows in Export Operations with Agricultural Products
Date Issued
2019
Is part of
Intelektinė ekonomika. ISSN 1822-8011, 2019, T. 13, Nr. 2
Field of Science
Abstract
The purpose of this paper is deal with possible ways of illegal profit shifting abroad, in particular through export trade of
agricultural products. In order to test the hypothesis on asymmetry between indicators of exports/imports between Ukraine and its
trading partners, there was carried out a comparative analysis by means of the mirror statistics method. The comparison of indicators
of products exports/imports by the method of mirror statistics confirmed the hypothesis regarding the asymmetry of these indicators in
international trade. There have been analyzed the world experience in combating tax evasion and profit shifting abroad as well as the
steps taken by Ukraine in this area, in particular the introduction of transfer pricing as a barrier to the hidden capital outflow from the
country. The authors’ main contributions are discovered asymmetry of mirror data such as price, trade value and weight of Ukrainian
grain. As a result, the mirror prices of imports of the partner country are significantly higher than the export prices of Ukrainian grain
(IAp – 1,20-1,67), whereas for the USA, France, Germany revealed a lack of significant difference between mirror prices for some
largest trading partners (IAp – 1,02-1,15). This is a confirmation of shifting profits from Ukraine in order to place them in more reliable
jurisdictions and evidence base for the introduction of more stringent measures such as transfer pricing.
agricultural products. In order to test the hypothesis on asymmetry between indicators of exports/imports between Ukraine and its
trading partners, there was carried out a comparative analysis by means of the mirror statistics method. The comparison of indicators
of products exports/imports by the method of mirror statistics confirmed the hypothesis regarding the asymmetry of these indicators in
international trade. There have been analyzed the world experience in combating tax evasion and profit shifting abroad as well as the
steps taken by Ukraine in this area, in particular the introduction of transfer pricing as a barrier to the hidden capital outflow from the
country. The authors’ main contributions are discovered asymmetry of mirror data such as price, trade value and weight of Ukrainian
grain. As a result, the mirror prices of imports of the partner country are significantly higher than the export prices of Ukrainian grain
(IAp – 1,20-1,67), whereas for the USA, France, Germany revealed a lack of significant difference between mirror prices for some
largest trading partners (IAp – 1,02-1,15). This is a confirmation of shifting profits from Ukraine in order to place them in more reliable
jurisdictions and evidence base for the introduction of more stringent measures such as transfer pricing.
Type of document
type::text::journal::journal article::research article
ISSN
1822-8038
Language
Anglų / English (en)
Access Rights
Atviroji prieiga / Open Access
Journal | Cite Score | SNIP | SJR | Year | Quartile |
---|---|---|---|---|---|
Intellectual Economics | 2 | 0.854 | 0.236 | 2019 | Q2 |