Arcade Ndoricimpa will be working on an ongoing project titled Capital movement through trade misinvoicing in Africa: A Disaggregated Approach. The phenomenon of capital flight has become an issue of increasing concern over the past decades because of the scourge it inflicts upon poverty alleviation efforts in the developing countries. The international community recognizes that the commitment to sustainable development is being increasingly undermined by illicit financial flows. Previous studies have shown that trade misinvoicing is an important mechanism for capital flight. Trade misinvoicing undermines domestic resource mobilization as it robs governments of customs duties and corporate tax revenues. This hampers social service delivery and poverty reduction efforts. The objective of this project is to generate evidence that may help to better understand the phenomenon of trade misinvoicing and identify ways to tackle the problem. Using trade data from the United Nation’s COMTRADE database and the IMF’s Direction of Trade Statistics (DOTS) database, the study seeks to estimate trade misinvoicing in Africa at a disaggregated level, by major trading partners and by major export and import commodities. Factors determining trade misinvoicing in Africa will also be examined, and potential loss of tax revenues will as well be computed.
Ndoricimpa is currently an associate professor in the faculty of economics and management at the University of Burundi. He is the STIAS-Iso Lomso fellow at CASBS. His research interests are mainly in applied macroeconomics.