Event Detail

The Costs of Bureaucracy and Corruption at Customs: Evidence from the Computerization of Imports in Colombia

Presented by:
Rachid Laajaj
Department of Economics
University of Los Andes

Wednesday, February 10, 2021
On-line via Zoom
12:00 pm-1:30 pm

How deep are the economic effects of e-government at the public agencies that interact most intensely with the business sector? We assess the effects of the computerization of import transactions in Colombia, relying on its sequential implementation for identification. Compared with non-exposed producers, importers exposed to reformed ports experienced an increase in sales, input use, imports and exports, as well as revenue productivity. Reformed ports increased the number and size of import transactions, and tax collections per dollar of imports. The reform also increased the predictability of customs clearance times and reduced smuggling and corruption cases at ports.

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