Risk Management in Border Inspection
As part of their commitments under the World Trade Organization’s Agreement on Trade Facilitation, many developing countries are set to adopt risk management, a strategy for selecting import shipments for inspection. This paper formalizes key enforcement issues related to risk management. It ar...
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World Bank, Washington, DC
2020
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Online Access: | http://documents.worldbank.org/curated/en/816841602688697224/Risk-Management-in-Border-Inspection http://hdl.handle.net/10986/34633 |
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okr-10986-346332022-09-20T00:10:22Z Risk Management in Border Inspection Hillberry, Russell Karabay, Bilgehan Tan, Shawn W. TRADE FACILITATION BORDER INSPECTION RISK MANAGEMENT SANITARY AND PHYTOSANITARY STANDARDS AMBIGUITY AVERSION CHOQUET EXPECTED UTILITY IMPORT INSPECTION As part of their commitments under the World Trade Organization’s Agreement on Trade Facilitation, many developing countries are set to adopt risk management, a strategy for selecting import shipments for inspection. This paper formalizes key enforcement issues related to risk management. It argues that the complexities of international trade oversight mean that inspecting agencies lack certainty about the conditional probability that a given shipment will not comply with import regulations. Ambiguity of this sort is likely to be important in developing countries that lack the sophisticated information technology (IT) used in advanced risk management systems. This paper show empirically that infrequent shipments have conditionally higher inspection rates, a finding that is consistent with the ambiguity hypothesis. This paper formalizes a role for ambiguity in a theoretical model of border inspection. Finally, the paper calibrates the model and shock the ambiguity parameters to illustrate the consequences of an IT -driven improvement in risk management capabilities for search and compliance. 2020-10-16T20:00:22Z 2020-10-16T20:00:22Z 2020-10 Working Paper http://documents.worldbank.org/curated/en/816841602688697224/Risk-Management-in-Border-Inspection http://hdl.handle.net/10986/34633 English Policy Research Working Paper;No. 9438 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English |
topic |
TRADE FACILITATION BORDER INSPECTION RISK MANAGEMENT SANITARY AND PHYTOSANITARY STANDARDS AMBIGUITY AVERSION CHOQUET EXPECTED UTILITY IMPORT INSPECTION |
spellingShingle |
TRADE FACILITATION BORDER INSPECTION RISK MANAGEMENT SANITARY AND PHYTOSANITARY STANDARDS AMBIGUITY AVERSION CHOQUET EXPECTED UTILITY IMPORT INSPECTION Hillberry, Russell Karabay, Bilgehan Tan, Shawn W. Risk Management in Border Inspection |
relation |
Policy Research Working Paper;No. 9438 |
description |
As part of their commitments under the World Trade
Organization’s Agreement on Trade Facilitation, many
developing countries are set to adopt risk management, a
strategy for selecting import shipments for inspection. This
paper formalizes key enforcement issues related to risk management.
It argues that the complexities of international
trade oversight mean that inspecting agencies lack certainty
about the conditional probability that a given shipment
will not comply with import regulations. Ambiguity of this
sort is likely to be important in developing countries that
lack the sophisticated information technology (IT) used
in advanced risk management systems. This paper show
empirically that infrequent shipments have conditionally
higher inspection rates, a finding that is consistent with the
ambiguity hypothesis. This paper formalizes a role for ambiguity
in a theoretical model of border inspection. Finally,
the paper calibrates the model and shock the ambiguity
parameters to illustrate the consequences of an IT -driven
improvement in risk management capabilities for search
and compliance. |
format |
Working Paper |
author |
Hillberry, Russell Karabay, Bilgehan Tan, Shawn W. |
author_facet |
Hillberry, Russell Karabay, Bilgehan Tan, Shawn W. |
author_sort |
Hillberry, Russell |
title |
Risk Management in Border Inspection |
title_short |
Risk Management in Border Inspection |
title_full |
Risk Management in Border Inspection |
title_fullStr |
Risk Management in Border Inspection |
title_full_unstemmed |
Risk Management in Border Inspection |
title_sort |
risk management in border inspection |
publisher |
World Bank, Washington, DC |
publishDate |
2020 |
url |
http://documents.worldbank.org/curated/en/816841602688697224/Risk-Management-in-Border-Inspection http://hdl.handle.net/10986/34633 |
_version_ |
1764481318963380224 |