Investigating the role of government trade policies and regulations on smuggling cosmetic products

Abstract: This paper investigates the effects of government trade policies as well as the rules and regulations on smuggling cosmetic products in Iran. The study considers the effects of five important factors including high tariffs and bureaucratic procedures, registration process, size and expire date, lack of accurate monitoring of distribution channels and government recent regulation failure on growth of smuggling cosmetic products in Iran. The proposed study uses structural equation modeling to examine the effects of these five components. The results indicate a positive and meaningful relationships between four variables including registration process (B = 0.84, P-value = 0.000), size and expire date (B = 0.86, P-value = 0.000), high rate of tariff (B = 0.88, P-value = 0.000) and government recent regulation failure (B = 0.97, P-value = 0.000) on growth of smuggling cosmetic products in Iran. In addition, the study has detected a negative and meaningful relationship between lack of accurate monitoring of distribution channels and growth of smuggling cosmetic products in Iran (B = -0.18, P-value = 0.000).

How to cite this paper

 Seifpoor, S & Mousa, R. (2014). Investigating the role of government trade policies and regulations on smuggling cosmetic products.Management Science Letters , 4(6), 1147-1152.

Refrences

Aasness, J., & Nyg?rd, O.E. (2014). Revenue functions and Dupuit curves for indirect taxes with cross-border shopping. International Tax and Public Finance, 21 (2), 272-297.

Benson, J. S., & Decker, S. H. (2010). The organizational structure of international drug smuggling. Journal of Criminal Justice, 38(2), 130-138.

Bhagwati, J., & Hansen, B. (1973). A theoretical analysis of smuggling. The Quarterly Journal of Economics, 87(2), 172-187.

Bruns, B., Miggelbrink, J., & Müller, K. (2011). Smuggling and small-scale trade as part of informal economic practices: Empirical findings from the Eastern external EU border. International Journal of Sociology and Social Policy,31(11/12), 664-680.

Breuer, I., & Kreuer, D. (2012). Market spaces in a globalising periphery: Livestock trade, borders, and liberalisation in eastern morocco. Economic Spaces of Pastoral Production and Commodity Systems: Markets and Livelihoods, 151.

Che, Y., Benson, B.L. (2014). Drug trafficking wars: Enforcement versus smugglers and smugglers versus smugglers. Journal of Drug Issues, 44(2), 150-179.

Decker, S. H., & Chapman, M. T. (2008). Drug smugglers on drug smuggling. Philadelphie: Temple University Press.

Farzanegan, M. R. (2009). Illegal trade in the Iranian economy: Evidence from a structural model. European Journal of Political Economy, 25(4), 489-507.

Goel, R. K. (2012). Effect of generic cigarettes on US cigarette demand and smuggling. Economics Letters, 115(1), 114-117.

Gordoncillo, P.U., Quicoy, C.B., Delos Reyes, J.A., Vista, A.B. (2013). Effectiveness of anti-smuggling policies for selected agricultural commodities in the Philippines. Journal of the International Society for Southeast Asian Agricultural Sciences, 19 (1), 8-23.

Grewcock, M. (2014). Australian border policing: Regional & apos; solutions & apos; and neocolonialism. Race and Class, 55(3), 71-78.

Hartnett, A., Dawdy, S.L. (2013). The archaeology of illegal and illicit economies. Annual Review of Anthropology, 42, 37-51.

Martin, L., & Panagariya, A. (1984). Smuggling, trade, and price disparity: A crime-theoretic approach. Journal of International Economics, 17(3), 201-217.

Mountz, A. (2003). Human Smuggling, the Transnational Imaginary, and Everyday Geographies of the Nation?State. Antipode, 35(3), 622-644.

Mountz, A. (2004). Embodying the nation-state: Canada’s response to human smuggling. Political geography, 23(3), 323-345.

Nethery, A., & Gordyn, C. (2014). Australia-Indonesia cooperation on asylum-seekers: a case of & apos; incentivised policy transfer & apos; . Australian Journal of International Affairs, 68 (2), 177-193

Xheneti, M., Smallbone, D., & Welter, F. (2013). EU enlargement effects on cross-border informal entrepreneurial activities. European Urban and Regional Studies, 20(3), 314-328.