Tax policy and economic growth in developing nations

First, the impact of explicit taxation on development is discussed, taking into account recent research into the effect of taxation on the economy, and applying it to the special conditions of developing countries. Assessed next is the impact of "implicit taxes" - government regulations, controls, and other interferences with the free market that reduce the rates of return for work, savings, and investment. The relationship between tax structures/rates and economic growth, civil liberty, and democracy in developing countries is examined; included is a description of changes in marginal tax rates in some developing countries which reveals the distinction between pro-growth and anti-growth systems. Finally, various successful tax incentives which have spurred investment, output, and employment in developing countries are outlined. Numerous references and comments from experts are included.