We employ the Lewis-Ranis-Fei theory of dualistic economic development as a framework to investigate China's rapid growth over 1965-2002. We find that China's economic growth is mainly attributable to the development of the non-agricultural (industrial and service) sector, driven by rapid labour...

Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical...

Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical...