Illegal Trade Research Articles

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This paper investigates the impact of urbanization on the shadow economy in a group of Asian Tiger Cub countries such as Indonesia, Malaysia, the Philippines, Thailand, and Vietnam over the period 2002–2017. Using Bayesian regression, our results provide strong evidence supporting an inverted U-shaped relationship between the level of urbanization and the shadow economy. From a policy perspective, our results suggest that countries that are not yet experiencing a threshold level of urbanization need to quickly accelerate this process to have a smaller shadow economy.

E-Commerce Liability to Consumers For the Sale of Black Market Products

The rapid expansion of e-commerce has significantly transformed consumer purchasing behaviors, but it has also given rise to the sale of black market goods through online platforms, raising critical concerns about consumer protection and regulatory oversight. This study investigates the responsibilities of e-commerce platforms regarding the sale of black market products and evaluates the effectiveness of legal and regulatory frameworks currently in place. Adopting a normative juridical research method, this study involves a thorough analysis of existing laws, regulations, and industry standards pertaining to e-commerce and black market transactions. By examining legal texts, regulatory guidelines, and case law, this research identifies gaps in the current legal framework and assesses its adequacy in addressing black market activities. The results indicate that while legal provisions exist, they are often insufficiently enforced and lack clarity in their application to emerging e-commerce practices. The study concludes that e-commerce platforms must advocate for stronger legal reforms and clearer regulations to enhance consumer protection. Additionally, improved transparency in platform policies and heightened regulatory scrutiny are necessary to better address the challenges posed by black market goods. Future research should explore the development of more comprehensive legal strategies and frameworks to effectively combat black market transactions in the digital realm.

The Right to Use Cash: A Case Study of India

India is facing a shift towards a cashless society using alternative methods for payment transactions based on electronic and digital means. It is a country with the fastest growing economy in the world and a heterogeneous population. The country's digitalisation of money transactions is growing and is applied in all government transactions and has taken a big leap in many spheres of its operations, which brings inclusiveness in society. The important motives behind this is to provide basic banking services to hitherto unbanked masses and to curb black money, tax evasion and the threat of terrorism. However, the peripheral parts of the society like, poor, elderly, physically challenged and others may be deprived of the benefits of financial systems due to their limitations in benefitting from the digital transformation. A cashless society may not be in the interests of these groups and it may result in social exclusion rather than inclusion. However, consumers need to have the right to choose their preferred payment method and there should be adequate availability of cash and ATMs. Eliminating cash would have negative consequences and may have adverse effects on these populations. This paper takes a look into the aspects of the right of the public as a consumer in choosing cash as the payment method of her convenience and choice.

Caught in the net: Unravelling policy challenges and smuggling dynamics in Indonesia’s puerulus exploitation

Indonesia’s natural puerulus resources position the country as a potential leader in lobster aquaculture. Over the last decade, frequent policy changes aimed at restricting exports have been enacted to encourage domestic aquaculture production; however, illegal trade has increased. This study explores Indonesia’s puerulus governance, analysing the impact of export bans on illegal trade and resources management from 2015 to 2022. We examined the strategies employed by fishermen and other business groups in puerulus trading and smuggling, and their implications on the state revenue by combining court rulings and semi-structured interviews with fishermen and puerulus dealers. We found that the export ban policy has spurred (1) illegal trade, further straining the struggling fishers, (2) potential loss of government revenue from puerulus export, and (3) the stalled domestic aquaculture industry due to the absence of capacity building and enabling environments for domestic production to complement the export ban. Our results indicate that the weak legal enforcement may be the reason the export ban did not work and local aquaculture development has not progressed as expected. Future puerulus management policy underscores the needs for a balanced approach that combines liberal trade policies with strict law enforcement and monitoring, along with capacity building and institutional support for fishermen and the private sectors to develop local aquaculture and curb illegal trading.

Research on Suppression Measures for Illegal Trade in Wildlife Based on Change Theory

Research on Suppression Measures for Illegal Trade in Wildlife Based on Change Theory

The non-linear effect of income on the shadow economy

This paper aims to explore the correlation between individual income and tax evasion. We develop a novel theoretical model based on the argument that the level of public goods provision and the perceived fairness of public services significantly influence an individual's attitude towards taxation. The model reveals a concave pattern, indicating the presence of an income threshold. Initially, as an individual's income increases, tax evasion decreases due to the perceived fairness of their contributions relative to the benefits received from public services. However, beyond this threshold, the tax burden is perceived as unfair, leading to an increase in tax evasion as income levels rise. We also proof that this income threshold is influenced by the tax rate and enforcement system. We also conduct a panel data analysis on a sample of 35 OECD countries from 2007 to 2020 to support the theoretical findings. The empirical investigation confirms a U-shaped relationship between income and the underground economy. Our findings suggest that policymakers should introduce measures to improve the quality of public goods provision, considering the potential adverse effect of higher income on economic growth. This study is the first to theoretically investigate the non-linear relationship between income and tax evasion while also providing empirical evidence.

The single tax in Ukraine: reform or repeal

The institution of a simplified taxation system provided for in the tax system of Ukraine is characterized by permanent variability, which is always aimed at achieving an optimal balance between national interests (reduction of the shadow economy sector; attracting funds to budgets; reducing the level of tax administration costs; preventing the use of simplified taxation system in minimization schemes; etc.) and individual interests of taxpayers (reducing the tax burden; promoting the competitiveness of taxpayers; improving the convenience of paying taxes; minimizing the amount of tax reporting; etc.). Since the introduction of the simplified taxation system, it has been significantly transformed and, compared to 1998, is qualitatively better. Despite this, discussions in political and scientific circles about the need to take steps to further modify this special tax regime, up to its complete abolition, do not stop. The article considers the National Revenue Strategy until 2030 approved by the supreme executive body of Ukraine, which defines a medium-term roadmap for reforming tax policy and tax administration in Ukraine. The article outlines the main principles that should be followed in modernizing the national simplified taxation system and considers the goals that the state seeks to achieve through the practical implementation of the approved strategy. The author describes in detail the key measures envisaged by this national strategy for reforming the simplified taxation system, including in the context of Europeanization of the tax system of Ukraine, and points out the uncertainty of certain elements of these measures, which leads to complications in the tax planning process for entities. The author concludes that the approved national strategy, which is aimed at approximating the national tax policy and tax legislation of Ukraine to the provisions of the European Union legislation, provides for depriving legal entities (including agricultural producers) of the right to tax their income with a single tax, and defines measures to tighten the requirements for single tax payers (individual entrepreneurs) and increase their tax burden.

Pharmaceutical Dependence and Organization of a Criminal Subculture

Pharmacy drug addiction can lead to the formation of criminal subcultures and groups where people suffering from drug addiction can gather. This creates an environment in which criminal activity can become widespread, with the illegal trade in medicines contributing to increased crime rates in society. Access to prescription drugs (especially opioids, antidepressants, and psychostimulants) through the Internet and illicit channels is contributing to the rise in addiction among various segments of the population, especially among adolescents and young adults. A tendency immediately appears to organize a criminal subculture: its own circle, its own colloquial clichés. Pharmacy addiction causes serious damage to the health of young people, but also contributes to the development of a criminal subculture involved in the illegal trade and distribution of drugs. The author examines the causes leading to the development of addiction and analyzes the consequences for health and social sphere. Particular attention is paid to the structure and functioning of criminal groups involved in the illegal trade in medicines. The impact of these groups on society, including increased crime and economic losses, is examined. The article also proposes measures to prevent and combat pharmacy addiction and the criminal subculture, including strengthening control over the circulation of prescription drugs, prevention programs and law enforcement measures.

Organized Criminal Groups in the Modern World: Theoretical Foundations, Structure and Functional Aspects

This article is a comprehensive study of organized criminal groups (OCGs) in the modern world, covering the theoretical foundations of their study, structural characteristics and functional aspects of their activities. The paper traces the evolution of the concept of organized crime in criminological science, analyzes modern approaches to the definition and classification of OCGs, and considers the legal aspects of their definition at the international and national levels. Special attention is paid to the analysis of the structural characteristics of modern organized crime groups, including traditional hierarchical models, network structures, hybrid forms of organization, as well as new forms such as cluster and project organization. The study shows a trend away from rigid hierarchical structures towards more flexible and adaptive forms of organization, which allows OCGs to effectively resist law enforcement pressure and adapt to changing conditions. The article also examines key functional aspects of organized crime groups, including their role in the shadow economy, establishment of corruption links, transnational activities, use of modern technologies and adaptation to countermeasures. The impact of globalization and technological progress on the evolution of OCG forms and methods of operation is highlighted. The study demonstrates the need for an interdisciplinary approach to the study of organized crime, taking into account the complexity and dynamism of this phenomenon. The work contributes to the understanding of current trends in the development of organized crime and can serve as a basis for the development of effective strategies to counter organized crime.

Study on Illegal Trade in Wildlife Based on AHP and ARMI-Intervention-SVR Series Models

Study on Illegal Trade in Wildlife Based on AHP and ARMI-Intervention-SVR Series Models

Reducing the illegal wildlife trade based on multiple linear regression model

Reducing the illegal wildlife trade based on multiple linear regression model

The effect of shadow economy on foreign direct investment: Empirical evidence in emerging market economies 1988-2018

This paper aims to examine the effect of shadow economy on foreign direct investment (FDI) in emerging market economies (EMEs) starting from 1988 to 2018. The error-correction model (ECM) is applied to estimate the dynamic panel data in the short run model, and for the long run model, this study applied ordinary panel data approach to both the fixed effect model (FEM) and the random effect model (REM). This study considers the global financial crisis of 1998 by dividing the estimation into three periods, i.e., pre-crisis, post-crisis, and all periods. The results show that shadow economy had a significantly negative effect on FDI inward both in the long run and the short run during the pre-crisis period, while economic growth, trade openness, policy rate, population, and infrastructure had various significant effects on FDI inward. The long-run estimation revealed that economic growth, policy rate, inflation, and the human development index (HDI) were all significant factors. Only the exchange rate, as one of efficiency-seeking motives and macroeconomic factors, has a significant role in FDI in EMEs. This analysis suggests that policymakers need to consider shadow economy along with investor motives and macroeconomic variables to provide more FDI, while investors need to consider the country’s advantages that could potentially provide a rate on return on investment.

Online Illegal Cryptomarkets

Cryptomarkets—online markets for illegal goods—have revolutionized the illegal drug trade, constituting about 10% of all drug trades and attracting users to a greater variety of and more addictive substances than available in offline drug markets. This review introduces the burgeoning area of sociology research on illegal cryptomarkets, particularly in the realm of drug trade. We emphasize the expanding role of illicit online trade and its relevance for understanding broader exchange challenges encountered in all illegal trade settings. Examining the effects of online illegal trade on consumption and supply-side policing, we also discuss the harm and potential benefits of moving drug exchange from offline to online markets. We argue for a network perspective's efficacy in this research domain, emphasizing its relevance in assessing trade and discussion networks, technical innovation, and market evolution and vulnerabilities. Concluding, we outline future research areas, including market culture, failure, and the impact of online illegal trade on stratification.

Black Market Exchange Rate, Currency Substitution and Demand for Money

Strict control on foreign exchange and successive devaluation of domestic currency adopted by Algerian government for nearly four decades resulted in black market for foreign currencies, high inflation rates and consequently, lost of confidence in Algarian dinar as a unit of account and store of value. The aforementioned results have given rise to the phenomenon of currency substitution.The aim of this paper is to provide evidence of the existence of currency substitution in Algeria. Using time series data covering the period 1990-2021 and an autoregressive distributive lag (ARDL) model combined with CUSUM and CUSUMQ, the demand for money in Algeria is estimated. Our results point out to the existence of currency substitution when the black market exchange rate is incorporated in the money demand equation. Our findings contribute to the existing litterature on currency substitution issue. As far as policy makers are concerned, the existence of CS could hinder the effectiveness of stabilization policies and thus, means of reducing currency substitution should be devoted.

Illegal wildlife trade measuring based on data-driven analyses

Illegal wildlife trade measuring based on data-driven analyses

Risk and Reward: How Shadow Economies Impact the Financial Practices of Militant Organizations

ABSTRACT Violent non-state actors often maintain diverse economic portfolios to fund their operations and endure. While some tactics yield limited funds, such as opportunistic robberies or kidnappings, other activities such as smuggling and drug trafficking can produce consistently high returns, but require complex planning, coordination and execution. This study delves into the nexus between the economic environments in which militant groups operate and their funding tactics. We hypothesize that the magnitude of a state’s informal economy plays a significant role in shaping the fundraising choices of militant organizations. Specifically, groups operating within states with expansive shadow economies are likely to lean towards intricate, high-yield fundraising tactics over unpredictable, hit-or-miss methods. States with sprawling informal sectors often grapple with governance deficiencies, that provide fertile ground for collaborations between militant factions and criminal syndicates and enable them to pursue lucrative funding opportunities that demand connections and logistical infrastructure. We use the case study of FARC to illustrate our argument, and test our arguments quantitatively using group-level data on the funding activities of militant organizations around the world between 1998–2012.

Does macroprudential policy have any side effects on the shadow economy?

Purpose This paper aims to examine the impacts of macroprudential policy on the shadow economy worldwide. Design/methodology/approach We compile a panel dataset covering 125 countries from 1990 to 2018. This paper mitigates potential endogeneity issues via two-stage least squares and the two-step generalized method of moments (GMM). Findings The robust results show that the overall tightening of macroprudential policies exerts an expansion impact on the shadow economy. Further examination of the 16 individual macroprudential policy instruments finds that loan restrictions, countercyclical buffers, surcharges for systemically important financial institutions and capital conservation buffers have positive and statistically significant effect on the shadow economy. This relationship is only present during tightening episodes of macroprudential policy as loosening episodes do not exhibit any significant impact. Finally, this paper documents the nonlinear effects of macroprudential policy. Practical implications The results suggest that the supervisory authorities may need to consider another parameter, which is the development of the shadow economy, when devising the optimal macroprudential policy responses. Originality/value To the best of the authors’ knowledge, this paper is likely the first to empirically document the impact of macroprudential policy on the shadow economy. It contributes to the growing literature on the potential side effects of macroprudential policy on the macro-economy.

Species authentication and conservation challenges in Chinese fish maw market using Mini-DNA barcoding

Fish maws, derived from the swim bladders of fish, are valued for their high collagen content and nutritional benefits, leading to significant market demand, especially in Asia. This study investigates the species authenticity of fish maw products using mini-DNA barcoding technology to address issues of mislabeling and substitution. Out of 350 samples, 347 were successfully sequenced, revealing a high mislabeling rate of 51.01% among identified species. Species such as Diodon liturosus and Diodon hystrix were found, posing significant health risks due to the presence of tetrodotoxin, a potent neurotoxin. The study also highlights the conservation implications of this market, with endangered species like Totoaba macdonaldi being illicitly traded. These findings underscore the urgent need for accurate species identification, stringent labeling regulations, and enhanced fishery management to protect endangered species and ensure consumer safety. This research advocates for robust international cooperation and reporting to combat illegal fishing and trade, promoting the sustainable development of fish populations and marine ecosystem health.

Illegal Animal Trade by Crime Groups between Indonesia and Australia Becomes a Phenomenon that Threatens Global Issues

This research explains the phenomenon of illegal animal trade, which is one of the organized transnational crimes in the current era of globalization. Australia and Indonesia are countries affected by the illegal animal trade, making it a global threat that cannot be overcome easily. The research question is why illegal animal trade between Australia and Indonesia has become a strong network at the international level and threatens a global issue. The aim of this research is to analyze one case of TOC, namely the illegal animal trade that occurred between Indonesia and Australia, because this issue is a phenomenon that threatens global issues and has become a strong network at the international level. Data was collected through various literature sources and literature studies, and document review techniques were used for the data collected in this research. Data analysis uses analysis with a descriptive and qualitative approach. The amount of literature used in this research was 12 journal articles, 8 newspapers and reports, five repositories, two theses, and three books. The results of the analysis found several findings and answers from this research, namely that this phenomenon involves two countries, apart from that this crime causes other crimes, and the perpetrators are part of an organized crime group that has many networks at the international level to carry out illegal animal trade on the international black market.

Exploring the nexus of occupational licensing and the shadow economy: Evidence from U.S. states

Exploring the nexus of occupational licensing and the shadow economy: Evidence from U.S. states