P088 - Smuggling along the new silk road: the role of Global Trade Hubs

• In Event: Poster Session & Ice Cream Social

Abstract

This research focuses on Global Trade Hubs (GTHs) and their role in facilitating illicit financial activities through smuggling. We define GTHs as states for which trade represents an economic activity that, in terms of value, is superior to the Gross Domestic Product of the country and/or countries where new port infrastructure able to welcome large-size containership have recently been developed. These countries/cities are essential platforms to facilitate international trade between Europe and Asia. The combination of physical assets (ports, airports, roads and/or rail connections), legal frameworks, dedicated services and institutions might also make such countries more susceptible to use by international crime organisations and rogue states.
In this project, we are first assessing quantitatively the participation of GTHs in smuggling. To do so, we will use proven methods based on mirror trade statistics. We will compare our measure to existing assessments of illicit activities and illicit financial flows. We will then explore qualitatively the perception and risk assessment of the selected GTHs in the UK and the EU in terms of their exposure to smuggling and illicit financial flows. To do this, we are conducting interviews with regulators, policymakers, law-enforcement, training-providers, and practitioners in the UK and the EU to understand how smuggling in GTHs could lead to tax evasion (e.g. issues around CP 42), money laundering, and sanctions evasion. Theoretically we build on the notion of stigma, which disqualifies the stigmatised from full social acceptance. Some of the hubs under study have been stigmatised for their involvement in facilitating illicit financial flows, while others have not. We will select a few cases guided by on our quantitative investigation to understand the emergence and persistence of stigma. Finally, we will provide an analytical “toolkit” for practitioners, based on the empirical findings and managerial theory on governance and misconduct.

Authors

• Mayya Konovalova, University of Birmingham

• Sami Bensassi, University of Birmingham

• Joao Araújo Marques, Aveiro University

• Adam Nix, University of Birmingham

• Arisyi Raz, Universitas Indonesia