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The Informal Sector in Developed and Less Developed Countries: A Literature Survey

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  • Klarita Gërxhani

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Abstract

The main goal of this study is two-fold: (1) to provide a general overview of the contributions to the literature on the informal sector, with a special focus on the public choice approach; and (2) to compare these contributions across two institutionally different types of countries: developed and less developed (developing and transition) countries. The paper focuses on the criteria used to define the informal sector, the relationship between the formal and informal economy, tax evasion, and public choice analysis. It is stressed throughout this paper that the distinction between the two types of countries is of key importance.

Suggested Citation

  • Klarita Gërxhani, 2004. "The Informal Sector in Developed and Less Developed Countries: A Literature Survey," Public Choice, Springer, vol. 120(3_4), pages 267-300, September.
  • Handle: RePEc:kap:pubcho:v:120:y:2004:i:3_4:p:267-300
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    References listed on IDEAS

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    6. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(2), pages 269-304, June.
    7. Wacziarg, Romain, 1998. "Measuring the dynamic gains from trade," Policy Research Working Paper Series 2001, The World Bank.
    8. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
    9. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
    10. Haufler,Andreas, 2008. "Taxation in a Global Economy," Cambridge Books, Cambridge University Press, number 9780521047593, December.
    11. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
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