This research revisits the effects of a country’s institutional framework on individual firms’ behavior, in particular … in compliance with legal rules and employ a rich data set on thousands of firms from dozens of transition countries to …

extent the context within which firms operate. -- Firms ; Institutions ; Law compliance ; Country differences ; Globalization …This paper revisits the effects of a country's institutional framework on individual firms' behavior, in particular … legal rules and employs a rich dataset based on thousands of firms from dozens of countries. We find that most of the …

of private firms to enter the unofficial economy and evade taxation? We propose a model in which the incentive of firms … affected by quality of governance - in particular by the presence of high-grade institutions delivering services enhancing … official production that anchor profit-maximizing firms to the official economy. Some key predictions of the model concerning …

effects of formalization. It suggests that the most informal firms do not benefit from formalization due to their underlying … formalization. Further, an improvement of the costs and benefits is not enough: better institutions are needed. …

effects of formalization. It suggests that the most informal firms do not benefit from formalization due to their underlying … formalization. Further, an improvement of the costs and benefits is not enough: better institutions are needed. …

results suggest that (particularly state) institutions aresignificant for growth and, especially, foreign direct investment …

The statement institutions matter has become commonplace. A precondition for it to be supported by empirical evidence …, is, however, that institutions are measurable. Glaeser et al. (2004) attacks many studies claiming to prove the relevance … of institutions for economic development as being based on flawed measures of institutions, or not even on institutions …