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What causes firms to hide output? : the determinants of informality

Author: Era Dabla-Norris; Mark Gradstein; Gabriela Inchauste; IMF Institute,; International Monetary Fund,
Publisher: Washington, D.C. : International Monetary Fund, IMF Institute, ©2005.
Series: IMF working paper, WP/05/160.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
In many developing countries, a significant part of economic activity takes place in the informal sector. Earlier work has examined the determinants of the size of the informal sector, focusing separately on factors such as tax and regulation burden, financial market development, and the quality of the legal system. We revisit this issue by using an integrated dataset which contains rich information on all these  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Dabla-Norris, Era.
What causes firms to hide output?
Washington, D.C. : International Monetary Fund, IMF Institute, ©2005
(OCoLC)62080685
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Era Dabla-Norris; Mark Gradstein; Gabriela Inchauste; IMF Institute,; International Monetary Fund,
ISBN: 1282447815 9781282447813 9781451907155 145190715X
OCLC Number: 680614704
Description: 1 online resource (32 pages).
Series Title: IMF working paper, WP/05/160.
Responsibility: prepared by Era Dabla-Norris, Mark Gradstein, and Gabriela Inchauste.

Abstract:

In many developing countries, a significant part of economic activity takes place in the informal sector. Earlier work has examined the determinants of the size of the informal sector, focusing separately on factors such as tax and regulation burden, financial market development, and the quality of the legal system. We revisit this issue by using an integrated dataset which contains rich information on all these aspects. Testing the channels affecting the degree of informality, we find evidence that all previously identified factors indeed play a role in driving informality. In particular, and consistent with the suggested theoretical model, we find support for the significance of the quality of the legal system.

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