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FDC / News  / Cross-border trade: Indonesia and PNG

Cross-border trade: Indonesia and PNG

Informal cross-border trade (ICBT) between sovereign states may be illegal, but it is not necessarily antisocial. On balance, and depending on the circumstances motivating traders to evade restrictions, it may even be welfare-enhancing for people on both sides of a border. This is certainly the case for informal trade in both directions across the border between Papua New Guinea and the Papua Province of Indonesia. Read more.