draining development.pdf - Khazar University

316 Draining Development?Table 10.1. Asymmetries in Australia–European Union Trade: A StatisticalPractitioner’s AssessmentIndicator 1992 1993 1994 1995 1996 1997a. Australian exports (f.o.b.)($A, millions)7,711 7,476 7,247 8,007 8,381 8,678AdjustmentsCountry classificationAustralian reexports −400 −417 −327 −451 −394 −333EU indirect imports 101 133 120 137 242 185EU reimports 215 195 240 245 275 315Exchange rate −25 −4 7 −1 1 −28Ships 80 — — — — —Adjusted Australian exports 7,682 7,383 7,286 7,937 8,504 8,815b. EU imports (c.i.f.) ($A, millions) 8,721 7,159 7,979 8,813 8,526 9,570AdjustmentsValuation −728 −605 −658 −737 −708 −795Timing −93 25 81 54 62 23Exchange rate −41 13 −7 — −6 –15Ships — — — — 236 —Nonmonetary gold 63 484 126 −4 119 —Adjusted EU imports 7,922 7,077 7,520 8,124 8,228 8,782c. DiscrepancyUnadjusted 1,010 −316 732 806 145 892percent 13 −4 10 10 2 10Adjusted 240 −306 235 187 −276 −34percent 3 −4 3 2 −3 —Source: ABS 1998.Note: — = not available.Trade Mispricing and Illicit Financial FlowsIFFs are, by definition, unobservable in official statistics. However,based on the assumption that trade mispricing is an important methodfor the unrecorded movement of capital out of a country, a number ofpapers have examined trade statistics to provide a rough empiricalindication of the magnitude of IFFs. In the following, two of theseapproaches are discussed in detail: the analysis of asymmetries in tradestatistics and the analysis of price anomalies in transaction-level tradedata.