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ECONOMIC ANALYSIS & MANAGEMENT STRATEGY STUDY OF COASTAL SMUGGLING ACT IN THE REPUBLIC OF CHINA

by Lu, Chen-Mao

Abstract (Summary)
ABSTRACT Over the past 40 years, the economic development has enabled our country to shift from an agriculture-based society to an industry & commerce-based one. In recent years, we have even been ranked one of leading countries involved in external trade. Of the island-type economy, our country highly relies on import to provide the goods which we fail to produce or afford. To ensure our security, maintain the economic order and public interest, and be in line with international trade norms, the government often formulates a variety of measures to control the people¡¦s economic activities. As the enforcement of control strategy narrows the imported goods, the smuggling becomes an access to seeking the substantial profit. That gives rise to more and more rampant smuggling in our country. In response to the economic development, social pattern, market needs and entry into WTO, we have sharply changed both customs policy and tariff rate structure. Moreover, large quantities of articles smuggled are transformed from the past foods, Chinese herbal medicines, textiles and cosmetics to nowaday wine & tobaccos, agricultural products, high-tech products, poisons and weapons, and the way of smuggling, from crew member to container and fishing boat. The act of smuggling constitutes economic crime, which is the part of underground economic activities. The activity of smuggling disrupts the domestic order of economy, destroys the governmental policy of control and influences the income of tariff. The smuggling of poisons and weapons even endangers the people¡¦s health, social safety and national security. The damage resulting from smuggling crime is far more serious than other criminality. Thus, it is the most urgent to analyze the factors contributing to smuggling and further put forth the management strategy for the government¡¦s reference. In this study, I first gather the major cases of smugglers arrested over the past years, then make use of the approaches such as documentary analysis, deep interview and empirical analysis to analyze the factors contributing to smuggling and next focus upon the factors to explore the management strategy of smuggling and submit the proposal. The results of research reveals that the primary factors contributing to smuggling are inclusive of high tax rate structure, the governmental enforcement of control and the existence of underground economic market. In addition, the governmental poor execution and lack of anti-smuggling manpower and equipment enable the smuggling activities to increase. According to the empirical analysis, if the coefficient for the impact of smuggling act happening during the preceding first and second terms on current smuggling act indicates positive, the learning effect of smuggling act occurring during the preceding first and second terms exists but is not so conspicuous. The coefficient of criminal case uncovering rate is negative, meaning if the uncovering rate is high, the smuggling act will reduce but the degree of influence is unconspicuous. Furthermore, the coefficient for the impact of police administration expenses incurred during the preceding first, second and fourth terms on the current expense is positive, signifying the learning effect of police administration expense exists but is conspicuous for the preceding first term with the coefficient of over 5%. The coefficient of average real income per capita is positive but unconspicuous. That signifies police administration expense is affected by income as well but the degree of influence is unconspicuous. Research comes to the conclusion that the government should measure the domestic productivity and market needs to moderately lift the ban on more smuggled goods or lower tax rate and work out rent seeking problem arising from control or high tax rate through the economic means. Besides, the government should list the budget for arresting smugglers to strengthen educational training for anti-smuggling personnel, improve anti-smuggling equipment, properly amend the statutes to heighten the penalty of smuggling crime, map out the measures for arresting smugglers, apply the strategic management model to strategic planning, strategic implementation, strategic assessment, strategic review and amendment in order to exert the anti-smuggling effect to a great extent and restrain the act of smuggling.
Bibliographical Information:

Advisor:none; Lee,James C.T; Jih-hwa Wu

School:National Sun Yat-Sen University

School Location:China - Taiwan

Source Type:Master's Thesis

Keywords:coast strategic management economic analysis smuggling

ISBN:

Date of Publication:09/01/2003

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