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Trade Liberalisation and Informality: New stylized facts

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  • Norbert Fiess
  • Marco Fugazza

Abstract

The 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 Info

Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2008_34.

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Date of creation: Dec 2008
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Handle: RePEc:gla:glaewp:2008_34

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Keywords: Informal Sector; Trade Liberalisation; Cross-sectional Analysis; Time Series Analysis; Panel Analysis;

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Citations

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Cited by:
  1. PHAM Thi Hong Hanh, 2011. "Globalisation versus Informality: Evidence from developing countries," FIW Working Paper series 074, FIW.
  2. Asongu Simplice, 2013. "Liberalization and financial sector competition: a critical contribution to the empirics with an African assessment," Working Papers 13/031, African Governance and Development Institute..
  3. Irene Vlachaki & Sarantis Kalyvitis, 2011. "When does more aid imply less democracy? An empirical examination," DEOS Working Papers 1125, Athens University of Economics and Business.
  4. Montes-Rojas, G. & Acosta, P., 2013. "Informal Jobs and Trade Liberalisation in Argentina," Working Papers 13/10, Department of Economics, City University London.

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