Trade Liberalisation and Informality: New stylized facts
AbstractThe relationship between trade liberalisation and informal activity has not received the attention, whether theoretical or empirical, that it may deserve. The conventional view poses that trade liberalisation would cause a rise in informality. This paper uses three different data sets to assess the sign of the relationship. Empirical results provide a mixed picture. Macro founded data tend to produce results supporting the conventional view. Micro founded data do not. Empirical results also suggest that while informal output increases with deeper trade liberalisation, informal employment falls.
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Bibliographic InfoPaper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2008_34.
Date of creation: Dec 2008
Date of revision:
Informal Sector; Trade Liberalisation; Cross-sectional Analysis; Time Series Analysis; Panel Analysis;
Other versions of this item:
- Marco Fugazza & Norbert Fiess, 2010. "Trade Liberalization And Informality: New Stylized Facts," UNCTAD Blue Series Papers 43, United Nations Conference on Trade and Development.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-03 (All new papers)
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