An analysis of rice smuggling in the Philippines, 1990-2011

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ma. Eden S. Piadozo

Committee Member

Julieta A. Delos Reyes, Isabelita M. Pabauyon

Abstract

The study analyzed the illegal importation of rice into the Philippines. Specifically, the study was conducted to: describe the process of rice importation in the Philippines, determine the different rice smuggling operations that importers usually do in the country, estimate the volume and value of smuggled rice in the Philippines from selected countries, calculate and assess the effects of forgone tariff revenue from smuggled rice, determine the factors affecting rice smuggling, and suggest recommendations to curb the smuggling of rice in the country. Using secondary data and literature review, different technical smuggling operations for rice were enumerated. It also listed down several reported cases of rice smuggling in the country through the years. The partner-country data discrepancy technique, on the other hand, was used to estimate the volume and value of smuggled rice from selected countries of origin and calculate the lost tariff revenue from the unpaid tariff on rice. Multiple regression analysis was also employed to determine the significant factors affecting the volume of smuggled rice in the Philippines. Results showed that there is a significant amount of smuggled rice from each of the countries exporting rice into the country. The factors significantly affecting the amount of smuggled rice were found out to be the exchange rate prevailing in the world market, the price of rice in the world and domestic market, and the quantitative restrictions on rice. When there is a bigger window for rice imports, chances of rice smuggling consequently increase. That is why it was recommended to decrease the said restrictions in order to lower the chances of technical rice smuggling. Local producers are also encouraged to take part in the campaign against smuggling- not only for rice, but for other commodities as well. On the other hand, negative levels of smuggling from the estimation of smuggled rice were found. It was attributed to the nature of secondary data that was used in the study. It is recommended that a better system of trade data recording be instituted in order to perform a better analysis of rice smuggling.

Language

English

Call Number

Thesis

Document Type

Thesis

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