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An Estimation of the Informal Economy in Morocco

Author

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  • Bourhaba Othmane
  • Hamimida Mama

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:9:p:140-147
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    References listed on IDEAS

    as
    1. Loayza, Norman V. & Rigolini, Jamele, 2006. "Informality trends and cycles," Policy Research Working Paper Series 4078, The World Bank.
    2. Friedrich Schneider & Andreas Buehn & Claudio Montenegro, 2010. "New Estimates for the Shadow Economies all over the World," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 443-461.
    3. Friedrich Schneider & Andreas Buehn & Claudio E. Montenegro, 2011. "Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 1, Edward Elgar Publishing.
    4. Roberto Dell’Anno & Friedrich G. Schneider, 2006. "Estimating the underground economy by using MIMIC models: A response to T. Breusch´s critique," Economics working papers 2006-07, Department of Economics, Johannes Kepler University Linz, Austria.
    5. Ceyhun Elgin & Oguz Oztunali, 2012. "Shadow Economies around the World: Model Based Estimates," Working Papers 2012/05, Bogazici University, Department of Economics.
    6. Elgin, Ceyhun & Oyvat, Cem, 2013. "Lurking in the cities: Urbanization and the informal economy," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 36-47.
    7. Schneider, Friedrich, 2002. "The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries," IZA Discussion Papers 514, Institute of Labor Economics (IZA).
    8. Trevor Breusch, 2005. "Estimating the Underground Economy using MIMIC Models," Econometrics 0507003, University Library of Munich, Germany, revised 15 Dec 2005.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Omar Farooq & Khondker Aktaruzzaman & Harit Satt & Fatima Zahra Bendriouch, 2022. "Innovations as a Response to Shadow Economy: Evidence from Privately Held Firms," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 349-370, December.
    2. Duman, Anil, 2024. "The Diversity of Informal Employment: a survey of drivers, outcomes, and policies," OSF Preprints yg3t7, Center for Open Science.
    3. 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.
    4. Anzhelika Viktorovna Karpushkina & Irina Valentinovna Danilova & Svetlana Vladimirovna Voronina & Irina Petrovna Savelieva, 2021. "Assessing the Impact of Employment in the Informal Sector of the Economy on Labor Market Development," Sustainability, MDPI, vol. 13(15), pages 1-15, July.

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    More about this item

    Keywords

    informal economy; MIMIC approach; Morocco; shadow economy;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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