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Economic Freedom - A Vector Of Transition From The Informal To The Formal Economy

Author

Listed:
  • Corneliu-Sorin BAICU

    (PhD Student, Stefan cel Mare University of Suceava)

  • Luminita-Claudia CORBU

    (PhD Student, Stefan cel Mare University of Suceava)

Abstract

This study aims to show that concerted action by the state and civil society can lead to an effective output of informality sphere by official or legal sphere. Such an action is represented by the vector concept named economic freedom. The resultant vector - economic freedom - is obtained by conjugating and composing of noneconomic factors (ownership freedom, freedom from corruption etc.) or cvasieconomic (fiscal freedom, labor freedom, investment freedom, etc.) and it is a prerequisite to a series of actions which are aimed at progressing progress and a healthy economy. If we cannot eradicate the phenomenon of informality, at least we can create a transition from the informal to the formal more efficiently and with positive effects in social and economic policy. The exit from the sphere of informality involves transitions strategies and not a simple translation from one sector to another.

Suggested Citation

  • Corneliu-Sorin BAICU & Luminita-Claudia CORBU, 2016. "Economic Freedom - A Vector Of Transition From The Informal To The Formal Economy," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8(1), pages 20-32, March.
    • Handle: RePEc:jes:wpaper:y:2016:v:8:i:1:p:20-32
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    File URL: http://www.ceswp.uaic.ro/articles/CESWP2016_VIII1_BAI.pdf
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    References listed on IDEAS

    as
    1. Martha Alter Chen, 2007. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," Working Papers 46, United Nations, Department of Economics and Social Affairs.
    2. Dominik H. Enste, 2018. "The shadow economy in industrial countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, November.
    3. Edwin J. Feulner, 2002. "Homeland Defense, Individual Freedom, and the Rule of Law," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 18(Fall 2002), pages 1-15.
    4. repec:iza:izawol:journl:y:2015:p:127 is not listed on IDEAS
    5. Charles R. Britton & Richard K. Ford & David E. R. Gay, 2004. "Economic Freedom, Property Rights, and the Informal Underground Economy," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 20(Fall 2004), pages 86-99.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Floridi, Andrea & Demena, Binyam Afewerk & Wagner, Natascha, 2020. "Shedding light on the shadows of informality: A meta-analysis of formalization interventions targeted at informal firms," Labour Economics, Elsevier, vol. 67(C).
    2. Gabriela PRELIPCEAN, & Anamaria BUCACIUC, & Corneliu Sorin BAICU, 2016. "Social Economy And Informal Economy. Interactions And Effects," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-12, july.

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    More about this item

    Keywords

    informal economics; formal economics; economic freedom; transition strategies;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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