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Formal and Informal Sectors in China and India: An Accounting-Based Approach

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Author Info
Codrina Rada

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Abstract

This paper discusses the estimation of a social accounting matrix that distinguishes between formal and informal activities for China and India for 2000 and 1998-99 respectively. Wage shares for the formal/informal employment for China and net domestic product shares for the formal/informal sectors for India are being applied as weights to the input-output tables and flow of funds tables provided by official statistics. While some estimation techniques used in this paper remain vulnerable to criticism, the proposed methodology is a first step towards an integrated approach to account for the dualism of many economies in the developing world. The results are important data input for any policy-driven CGE model for developing countries.

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Publisher Info
Paper provided by University of Utah, Department of Economics in its series Working Paper Series, Department of Economics, University of Utah with number 2009_02.

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Length: 34 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:uta:papers:2009_02

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Related research
Keywords: informal sector; social accounting matrix; comparative economic systems; China; India;

Find related papers by JEL classification:
E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth
E26 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
P44 - Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

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  1. Pyatt, Graham, 1991. "Fundamentals of Social Accounting," Economic Systems Research, Taylor and Francis Journals, vol. 3(3), pages 315-41.
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This page was last updated on 2009-11-16.

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