This paper examines the impact of the quality of the business environment as well as the monitoring capacity of the tax agency on firms' tax evasion and production decisions. First, the paper uses firm-level data for 30 African and Latin American countries to show that tax evasion and...

This paper examines the impact of the quality of the business environment as well as the monitoring capacity of the tax agency on firms' tax evasion and production decisions. First, the paper uses firm-level data for 30 African and Latin American countries to show that tax evasion and...