摘要：Higher taxation typically requires greater enforcement of formality to prevent tax evasion. However, in low
productivity regional economies, exogenous regulations can severely constrain the size of the formal sector regardless
of local government policies. As a result, tax rates can be higher, but possibly with weaker enforcement compared to
an autonomous economy case. In addition, if there is significant labor mobility across borders, regional governments
must take into account how the migration of different types of workers affects the regional economy.
