Administrative Costs and Tariff Rates in the Presence of Customs Evasion: Evidence from Ecuador

This paper seeks to assess the effectiveness of customs policies in increasing resources devoted controlling and inspection. Specifically, it analyze whether an increase administrative cost collecting taxes on foreign trade Ecuador contributes reducing fraud. To this end, we identify estimate a transfer function model (ARIMAX), considering information such as official international statistics report tariff rates, well execution budgetary expenditure Ecuador’s gross domestic product (GDP). The period under study includes quarterly series from 2006 2018. results obtained by indicate that allocating greater material combat fraud does not always achieve objective evasion.