Across 69 countries, higher tax rates are associated with less unofficial activity as a percent of GDP but corruption is associated with more unofficial activity. Entrepreneurs go underground not to avoid official taxes but to reduce the burden of bureaucracy and corruption. Dodging the Grabbing...

This paper is based on the governance chapter contributions to the 2003/04 Global Competitiveness Report (GCR). Building from the 2002/03 chapter contribution to the GCR, it argues that governance continues to be at a crossroad, its underperformance being evident in most regions and across many...

Across 69 countries, higher tax rates are associated with less unofficial activity as a percent of GDP but corruption is associated with more unofficial activity. Entrepreneurs go underground not to avoid official taxes but to reduce the burden of bureaucracy and corruption. Dodging the Grabbing...