Taxes and bribes: assessing the extraction burden in orderly and disorderly societies
Daniel Tarschys
Countries with a low GDP per capita generally have much lower fiscal quota than OECD countries, but many other factors push up the transaction costs in poor economies. High-tax societies provide more security, predictability and organizational discipline. The absence of such conditions is powerful breeding-ground for corruption. If payments bribes are added to arrive at composite measure ‘extraction burden’ different we might find that doing business do not diverge so various parts world.
European Review