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The Informal Sector in Developed and Less Developed Countries: A Literature Survey

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Author Info
Klarita Gërxhani ()

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Abstract

The main goal of this study is two-fold: (1) to provide a general overview of the contributions to the literature on the informal sector, with a special focus on the public choice approach; and (2) to compare these contributions across two institutionally different types of countries: developed and less developed (developing and transition) countries. The paper focuses on the criteria used to define the informal sector, the relationship between the formal and informal economy, tax evasion, and public choice analysis. It is stressed throughout this paper that the distinction between the two types of countries is of key importance.

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Article provided by Springer in its journal Public Choice.

Volume (Year): 120 (2004)
Issue (Month): 3_4 (09)
Pages: 267-300
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Handle: RePEc:kap:pubcho:v:120:y:2004:i:3_4:p:267-300

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  1. Schneider, Friedrich & Klinglmair, Robert, 2004. "Shadow Economies around the World: What Do We Know?," IZA Discussion Papers 1043, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Loayza, Norman, 2008. "Causas y consecuencias de la informalidad en el Perú," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 15, pages 43-64. [Downloadable!]
  3. Friedrich Schneider, 2004. "Shadow Economies around the World: What do we really know?," IAW Discussion Papers 16, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
    Other versions:
  4. Friedrich Schneider, 2006. "Shadow Economies and Corruption all over the World: What do we really Know?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Schneider, Friedrich, 2004. "The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003," IZA Discussion Papers 1431, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Loayza, Norman V. & Serven, Luis & Sugawara, Naotaka, 2009. "Informality in Latin America and the Caribbean," Policy Research Working Paper Series 4888, The World Bank. [Downloadable!]
  7. Christian von Soest, 2006. "Measuring the Capability to Raise Revenue Process and Output Dimensions and Their Application to the Zambia Revenue Authority," GIGA Working Paper Series 35, GIGA German Institute of Global and Area Studies. [Downloadable!]
  8. M.Govinda Rao, 2005. "Trends and Issues in Tax Policy and Reform in India," Working Papers id:243, esocialsciences.com. [Downloadable!]
  9. Christian Traxler, 2009. "Voting over taxes: the case of tax evasion," Public Choice, Springer, vol. 140(1), pages 43-58, July. [Downloadable!] (restricted)
    Other versions:
  10. Bouwe Dijkstra, . "Good And Bad Equilibria With The Informal Sector," Discussion Papers 06/01, University of Nottingham, School of Economics. [Downloadable!]
  11. Andreas Bühn & Alexander Karmann & Friedrich Schneider, 2007. "Size and Development of the Shadow Economy and of Do-it-yourself Activities in Germany," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  12. Rao, M. Govinda & Rao, R. Kavita, 2005. "Trends and issues in tax policy and reform in India," Working Papers tru1, National Institute of Public Finance and Policy. [Downloadable!]
  13. Chiumya, Chiza, 2007. "The Parallel Economy in Malawi: Size, Effect on Tax Revenue and Policy Options," MPRA Paper 9860, University Library of Munich, Germany. [Downloadable!]
  14. Dreher, A. & Méon, P. & Schneider, F., 2007. "The devil is in the shadow Do institutions affect income and productivity or only official income and official productivity?," Cambridge Working Papers in Economics 0768, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  15. Loayza, Norman V. & Oviedo, Ana Maria & Serven, Luis, 2005. "The impact of regulation on growth and informality - cross-country evidence," Policy Research Working Paper Series 3623, The World Bank. [Downloadable!]
  16. Norman Loayza, 2007. "The causes and consequences of informality in Peru," Working Papers 2007-018, Banco Central de Reserva del Perú. [Downloadable!]
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