this paper, we investigate whether higher productivity causally leads to lower tax evasion. We first present stylized facts … emerging and developing economies. Our results suggests that productivity improvements by firms can lead to lower tax evasion …

How do firm-specific actions-in particular, innovation-affect firm productivity? And what is the role of the financial … sector in facilitating higher productivity? Using a rich firm-level dataset, we find that innovation is crucial for firm … performance as it directly and measurably increases productivity. Moreover, its effects on productivity are mediated through the …