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How large is the size of Côte d'Ivoire's informal sector? A MIMIC approach

Author

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  • Paul Vivien OYIBO

    (Alassane Ouattara University of Bouaké, Côte d'Ivoire)

  • Friedrich SCHNEIDER

    (Johannes Kepler University of Linz, Austria)

Abstract

The informal sector occupies an important place in developing economies. This paper attempts both to estimate the size of the informal sector in Côte d'Ivoire over the period 1987-2020 and to determine its trend. The results obtained using the MIMIC method reveal that the size of the informal sector is equal to 42.35% of GDP in 2020, and also reveal that there is a growth and a positive trend of the informal sector in Côte d'Ivoire. Moreover, tax pressure, inflation and corruption play a determining role in the development of informal activities in Côte d'Ivoire.

Suggested Citation

  • Paul Vivien OYIBO & Friedrich SCHNEIDER, 2022. "How large is the size of Côte d'Ivoire's informal sector? A MIMIC approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(633), W), pages 205-216, Winter.
    • Handle: RePEc:agr:journl:v:4(633):y:2022:i:4(633):p:205-216
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    References listed on IDEAS

    as
    1. Michael Pickhardt & Jordi Sarda, 2011. "The size of the underground economy in Germany: a correction of the record and new evidence from the modified-cash-deposit-ratio approach," European Journal of Law and Economics, Springer, vol. 32(1), pages 143-163, August.
    2. Roseman Aspilaire, 2014. "L'économie informelle en Haïti : un impact contracyclique sur le PIB ?," Mondes en développement, De Boeck Université, vol. 0(2), pages 101-112.
    3. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
    4. Michael Pickhardt & Jordi Sarda Pons, 2006. "Size and scope of the underground economy in Germany," Applied Economics, Taylor & Francis Journals, vol. 38(14), pages 1707-1713.
    5. Bourhaba Othmane & Hamimida Mama, 2016. "An Estimation of the Informal Economy in Morocco," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 140-147, September.
    6. Schneider, Friedrich, 2008. "The Shadow Economy in Germany - A Blessing or a Curse for the Official Economy?," Economic Analysis and Policy, Elsevier, vol. 38(1), pages 89-111, March.
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