01880cas a2200265 a 4500 AALejournalIMF008874 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861792 1018-5941 BD-DhAAL BD-DhAAL Inchauste, Gabriela. What Causes Firms to Hide Output? : The Determinants of Informality / Gabriela Inchauste, Mark Gradstein, Era Dabla-Norris. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Dabla-Norris, Era. Gradstein, Mark. IMF Working Papers; Working Paper ; No. 2005/160 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/160/001.2005.issue-160-en.xml IMF e-Library