scholarly journals An Estimation of the Informal Economy in Morocco

2016 ◽  
Vol 8 (9) ◽  
pp. 140 ◽  
Author(s):  
Othmane Bourhaba ◽  
Hamimida Mama
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Tax Burden ◽  
Positive Tendency ◽  
Mimic Approach

<p>The paper attempts to both measure the size of the informal economy in Morocco and knows its tendency through the MIMIC approach. We calculated the size of the informal economy during the period 1999-2015. Our estimates show that this hidden part of economy constitutes 42.9% of the official GDP in 2015, and also show that there is a growth and a positive tendency of the informal economy in Morocco. The rise of corruption, the growth of the rate of urbanization and the tax burden play a determinant role in the magnification of the informal sector in Morocco.</p>

Money Multiplier Bias Due to Informal Sector: An Extension of the Existing Money Multiplier

2021 ◽  
pp. 227797872097988
Author(s):  
Khurrum S. Mughal ◽  
Friedrich G. Schneider ◽  
Faheem Aslam ◽  
Alishba Tahir
Keyword(s):  
Money Supply ◽  
Informal Sector ◽  
Informal Economy ◽  
Economic Policies ◽  
Official Statistics ◽  
Jel Codes ◽  
Money Multiplier ◽  
Multiplier Effect ◽  
The Impact

To demonstrate the impact of informal economy on the official money multiplier in currency supply, we present an extension of the basic money multiplier model. The influence of economic policies may differ if they are based only on official statistics without considering the informal sector. Since most of the activities in informal sector are hidden from authorities, it is widely assumed that these activities are based on cash transactions, a part of total currency that cannot be attracted towards deposits due to the holder’s fear of prosecution and taxation, etc. Therefore, it is expected that such currency holdings can give biased results by playing a role in the money multiplier, a phenomenon that is usually ignored while attempting to alter money supply. The article also indicates that because of informal sector, the currency deposit ratio in the money multiplier is smaller than expected (depending on size of the informal sector), leading to a larger multiplier effect. JEL Codes: E26, E51, O17

ANALYSIS OF THE LEVEL OF EMPLOYMENT IN THE INFORMAL SECTOR IN THE AMUR REGION

2021 ◽  
Author(s):  
A.V. Alexeeva ◽  
◽  
O.A. Tsepelev ◽  
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Age Groups ◽  
Amur Region ◽  
Level Of Education

The article analyzes the structure of people employed in the informal economy of the Amur region. The structure of employees by level of education and age groups is considered.

scholarly journals Informality and Economic Growth in Nigeria: 1980-2014

2017 ◽  
Vol 3 (3) ◽  
pp. 405 ◽  
Author(s):  
Mohammed Yelwa ◽  
A. J. Adam
Keyword(s):  
Economic Growth ◽  
Informal Sector ◽  
Informal Economy ◽  
Data Series ◽  
Formal Sector ◽  
Female Population ◽  
Demand Deposit ◽  
The Impact ◽  
Adf Test ◽  
The Relationship

<p><em>The paper examines the impact of informal sector activities on economic growth in Nigeria between 1980-2014. The contributions of informal sector activities to the growth of Nigerian economy cannot be over emphasized. It is the source of livelihood to the majority of poor, unskilled, socially marginalized and female population and is the vital means of survival for the people in the country lacking proper safety nets and unemployment insurance especially those lacking skills from formal sector jobs. The relationship between informality and economic growth is not clear because the sector is not regulated by the law also there is no concrete evidence that this sector enhances growth because the sector’s contributions to growth is not measured. The use of endogenous growth model becomes relevant in this study. The theory emphasizes the role of production on the long-run via a higher rate of technological innovation. The variables that were tested are official economy nominal GDP, informal economy nominal GDP, currency in circulation, demand deposit, ratio of currency in circulation to demand deposit, narrow money, informal economy as percentage of official economy. ADF test was conducted to establish that the data series of all variables are stationary t levels. Having established the stationarity test we also, conducted causality test of the response of official economy nominal GDP to informal economy nominal GDP. In conclusion, the impact of informal sector economy on economic growth in Nigeria is quiet commendable. Even though, the relationship between informality and economic growth is not straight. The paper recommended thus, the need for the government to integrate the activities of the informal economy into formal sector and size of the sector is measured and regulated because their roles are commendable. As it will improve tax collection and enhance fiscal policy.</em></p>

Neo-Dualism: Accumulation, Distress, and Proliferation of a Fissured Informality

2021 ◽  
pp. 048661342110121
Author(s):  
Kasturi Sadhu ◽  
Saumya Chakrabarti
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Growth Process ◽  
Jel Classification ◽  
Formal Sector ◽  
Firm Level ◽  
Macro Model ◽  
Long Run ◽  
Level Data ◽  
Firm Level Data

A dominant strand of orthodoxy argues that the problem of the informal sector could be mitigated through the capitalistic growth process. But our observations on India are different—with an expansion of the capitalistic formal sector, as the economy grows, there is a proliferation of fissured informality. Using a structuralist macro-model, we provide certain explanations for this phenomenon, which are also tested empirically using Indian subnational-state and firm-level data. Thus, we explore both the short- and long-run effects of the expansion of the formal sector on the heterogeneous informal economy. While a section of the population is pulled into the advanced informal activities, a vast segment is pushed to petty production. Accordingly, the orthodox transition narrative is questioned and alternative policy and political possibilities are introduced. JEL Classification: O11, O13, O17, P48

The size of the informal economy in Nigeria: a structural equation approach

2020 ◽  
Vol 47 (8) ◽  
pp. 1063-1078
Author(s):  
Roberto Dell'Anno ◽  
Omobola Adu
Keyword(s):  
Informal Economy ◽  
Structural Equation ◽  
Design Methodology ◽  
Total Population ◽  
National Bureau ◽  
Equation Approach ◽  
Content Type ◽  
Multiple Indicators ◽  
Mimic Approach ◽  
Official Estimate

PurposeThis paper contributes to the literature concerning the Nigerian informal economy (IE) by estimating its size from 1991 to 2017 and identifying the major causes.Design/methodology/approachA structural equation approach in the form of the multiple indicators multiple causes (MIMIC) method is used to estimate the size of the Nigerian IE.FindingsThe results indicate that vulnerable employment and urban population as a percentage of the total population are the main drivers of the IE in Nigeria. The IE in Nigeria ranges from 38.83% to 57.55% of gross domestic product (GDP).Research limitations/implicationsAs a result of the empirical challenges in the estimation of the IE, the estimates of Nigeria's IE are considered to be rough estimates.Originality/valueThe authors calibrated the MIMIC model with the official estimate of the informal sector published by the Nigerian National Bureau of Statistics (NBS). This was an attempt to combine the national accounting approach, to estimate the size of IE, with the MIMIC approach, and to estimate the trend of informality.

Commercialising innovations from the informal economy

2019 ◽  
Vol 8 (1) ◽  
pp. 40-61 ◽  
Author(s):  
Gautam Sharma ◽  
Hemant Kumar
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Secondary Data ◽  
Institutional Support ◽  
Developing Nations ◽  
Research Approach ◽  
Local Market ◽  
Content Type ◽  
Grassroots Innovation ◽  
Grassroots Innovations

Purpose The purpose of this paper is to discuss the commercialisation mechanisms of the innovations that emerge from the informal sector of Indian economy. Also known as grassroots innovations, they are said to better fit with the local market demands and conditions in the developing nations of the world. The paper discusses the grassroots innovation ecosystem in India and the role that is played by the state in providing institutional support. Design/methodology/approach The paper is based on an exploratory study using both the primary and secondary sources of data. Primary data are taken from the interview of the innovators during the field work, whereas secondary data are acquired from research articles published in various journals indexed in Scopus and web of sciences, government publications and reports. The annual reports of National Innovation Foundation are analysed to gather information and to build the arguments for this paper. The secondary data are also collected and evaluated from the database of the grassroots innovators available on Grassroots Innovation Augmentation Network. Findings The paper provides insight into how the grassroots innovations are commercialised in India through different pathways such as social entrepreneurship, technology transfer and open source technology. It takes four case studies to discuss the institutional support to the grassroots innovator and the challenges in the diffusion of the grassroots innovations. Research limitations/implications Due to the chosen research approach, the results cannot be generalised on all grassroots innovations. Researchers are encouraged to conduct a survey of more grassroots innovations in order to derive generalised outputs. Practical implications The paper includes implications for understanding the diffusion process of grassroots innovations that can be useful for all the emerging and developing nations. Originality/value The paper fulfils an identified need to study the diffusion modes of informal sector innovations and management of grassroots innovations.

Intensity of Regulations as a Cause of the Informal Sector

2020 ◽  
Vol 15 (2) ◽  
pp. 135-154
Author(s):  
Khurrum S. Mughal ◽  
Friedrich G. Schneider ◽  
Zafar Hayat
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Shadow Economy ◽  
Control Variable ◽  
Government Control ◽  
Yearly Variation ◽  
New Variant ◽  
History Of ◽  
Currency Demand ◽  
And Control

It is argued in the literature that the intensity of regulations and control in an economy is a determinant of the informal sector which however is ignored in most of its estimates. This article uses a new variant of the currency demand approach where ‘unemployment’ and ‘intensity of government control’ are used to estimate a shadow economy, alongside a the traditional tax variable. We choose Pakistan since it has a significant share of its activities in the informal sector along with the history of various political and dictatorial regimes. Further, there are examples of bureaucratic control leading to corruption in the economy. It provides an opportunity to study the nexus between regulation intensity and informal economy and present a case study for other developing countries exercising control over the economy through the large size of its public sector. The results show that the intensity of the control variable has statistically and economically significant role in increasing the shadow economy, almost equivalent to the tax coefficient. Once the yearly variation in our estimates is mapped with various political regimes, it seems that the validity of estimates is reinforced considering policy inconsistencies and prominent events of each regime.

EVALUATING THE GENDER VARIATIONS IN INFORMAL SECTOR ENTREPRENEURSHIP: SOME LESSONS FROM BRAZIL

2013 ◽  
Vol 18 (01) ◽  
pp. 1350004 ◽  
Author(s):  
COLIN C WILLIAMS ◽  
YOUSSEF YOUSSEF
Keyword(s):  
Labor Market ◽  
Informal Sector ◽  
Informal Economy ◽  
Developing Nations ◽  
Gender Disparities ◽  
Survival Strategy ◽  
Marginalized Populations ◽  
Men And Women ◽  
Gender Variations ◽  
Micro Enterprises

The aim of this paper is to evaluate critically the gender variations in informal sector entrepreneurship. Until now, a widely-held belief has been that entrepreneurs operating in the informal sector in developing nations are lowly paid, poorly educated, marginalized populations doing so out of necessity as a survival strategy in the absence of alternatives. Reporting an extensive 2003 survey conducted in urban Brazil of informal sector entrepreneurs operating micro-enterprises with five or less employees, the finding is that although less than half of these entrepreneurs are driven out of necessity into entrepreneurial endeavor in the informal economy, women are more commonly necessity-driven entrepreneurs and receive lower incomes from their entrepreneurial endeavor than men despite being better educated. The outcome is a call to recognize how the gender disparities in the wider labor market are mirrored and reinforced by the participation of men and women in the realm of informal sector entrepreneurship.

Expanding East African tax base will face resistance

2016 ◽  
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Essential Role ◽  
Budget Deficits ◽  
Formal Sector ◽  
East African ◽  
Efficient Manner ◽  
Tax Base ◽  
Member States ◽  
Content Type

Significance Member states' national budgets include plans to increase taxation of the informal economy. Governments have several reasons for broadening tax bases: budget deficits, increasing debts, donor dependency, declining revenue from the formal sector and a desire to improve services and infrastructure. Impacts Limited state resources will hinder attempts to formalise economies through enforcement alone. Incentives will play an essential role in any attempt to expand the tax base. Unless implemented in an efficient manner, taxation of the informal economy could drain government funds and hurt informal businesses. Successful taxation of the informal sector will fail unless businesses see returns in services or infrastructure.

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