Work detail

Analysis of transfer mispricing of commodity exports in African countries

Author: Bc. Martin Zachar
Year: 2012 - summer
Leaders: doc. Petr Janský Ph.D.
Work type: Bachelors
Language: English
Pages: 52
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Abstract: Governments around the world are burdened by what is estimated to be a $160 billion annual tax loss
stemming from transfer mispricing. Developing countries may be even more susceptible to this
phenomenon due to their lax reporting and regulatory standards. However, research done to date on
transfer mispricing with regards to developing countries is very limited. This paper investigates
commodity transactions between selected African countries and the world for 2008-2009, looking for
pricing anomalies in both absolute terms and in relation to global mispricing averages. The data was
examined using linear regression models, volume-based analysis and case study analyses. While the
former two did not find convincing evidence of substantial price distortions, the latter uncovered several
anomalies that may point to mispricing. These results point to the fact that transfer mispricing occurring
in developing countries is in line with that of the rest of the world.
Downloadable: BT Zachar


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