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Globalization, Reform and the Informal Sector

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  • Sugata Marjit
  • Dibyendu S. Maiti

Abstract

The objective of the paper is to understand the transforming relationship between the formal and informal sector in a liberalizing open developing economy. There are various facets in this relationship, and we focus on three essential aspects. First, we look at the impact of deregulatory policies in the informal sector on informal wages, the earning index of the substantial majority of the workforce in a developing economy. Theoretical discussions are followed by empirical evidence on informal manufacturing in India. Implications of introducing labour laws are also discussed.

Suggested Citation

  • Sugata Marjit & Dibyendu S. Maiti, 2005. "Globalization, Reform and the Informal Sector," WIDER Working Paper Series RP2005-12, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-12
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    References listed on IDEAS

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    1. Marjit, Sugata & Ghosh, Sudeep & Biswas, Amit, 2007. "Informality, corruption and trade reform," European Journal of Political Economy, Elsevier, vol. 23(3), pages 777-789, September.
    2. Marjit, Sugata, 2003. "Economic reform and informal wage--a general equilibrium analysis," Journal of Development Economics, Elsevier, vol. 72(1), pages 371-378, October.
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    10. Kar, Saibal & Marjit, Sugata, 2001. "Informal sector in general equilibrium: welfare effects of trade policy reforms," International Review of Economics & Finance, Elsevier, vol. 10(3), pages 289-300, July.
    11. Sugata Marjit & Saibal Kar & Punyabrata Sarkar, 2004. "Capital Mobility and Informal Wage in a Small Economy—Two Examples," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 5(2), pages 261-266, September.
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    Cited by:

    1. Ghosh Dastidar, Sayantan, 2015. "Manufacturing and Trade Liberalisation of India: Continuing the Debate," MPRA Paper 61907, University Library of Munich, Germany.
    2. Asha Sundaram, 2015. "The Impact of Trade Liberalization on Micro Enterprises: Do Banks Matter? Evidence from Indian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(6), pages 832-853, December.
    3. Pham, Thi Hong Hanh, 2017. "Impacts of globalization on the informal sector: Empirical evidence from developing countries," Economic Modelling, Elsevier, vol. 62(C), pages 207-218.
    4. Simplice Asongu, 2015. "Liberalisation and Financial Sector Competition: A Critical Contribution to the Empirics with an African Assessment," South African Journal of Economics, Economic Society of South Africa, vol. 83(3), pages 425-451, September.
    5. Mandal, Biswajit & Roy, Sangita, 2017. "Trade liberalization, Skilled Intermediate input and Wage Distribution," MPRA Paper 87459, University Library of Munich, Germany.
    6. Mitra, Sudeshna & Gupta, Kausik, 2017. "Liberalization and Welfare Conditions of a Developing Economy: A General Equilibrium Analysis," MPRA Paper 85230, University Library of Munich, Germany.
    7. Popli, Gurleen K., 2010. "Trade Liberalization and the Self-Employed in Mexico," World Development, Elsevier, vol. 38(6), pages 803-813, June.
    8. Serdar Acun, 2021. "Türkiye’de Ücretlilerin Kayıtlı Çalışma Olasılığını Belirleyen Faktörlerin Analizi," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(80), pages 423-450, June.
    9. Anirban Kundu, 2020. "Impact of trade liberalisation on formal–informal interlinkages in India: does sectoral labour mobility matter?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-29, December.
    10. PHAM Thi Hong Hanh, 2011. "Globalisation versus Informality: Evidence from developing countries," FIW Working Paper series 074, FIW.
    11. Victor Tanaka, 2010. "The ‘informal sector’ and the political economy of development," Public Choice, Springer, vol. 145(1), pages 295-317, October.
    12. Eckhard Siggel, 2010. "The Indian informal sector: The impact of globalization and reform," International Labour Review, International Labour Organization, vol. 149(1), pages 93-105, March.
    13. Roychowdhury, Punarjit & Dutta, Mousumi, 2011. "Regulation, governance and informality: an empirical analysis of selected countries," MPRA Paper 33775, University Library of Munich, Germany.
    14. Marjit, Sugata & Kar, Saibal, 2007. "Labor productivity growth, informal wage and capital mobility: A general equilibrium analysis," MPRA Paper 23912, University Library of Munich, Germany, revised 2008.
    15. Mandal, Biswajit & Roy, Sangita, 2016. "Trade liberalization and wage distribution when skilled intermediate input is used in import competing sector that uses a commom type of capital," MPRA Paper 87460, University Library of Munich, Germany.

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