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Poverty and Informal Trade

Author

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  • Andes Chivangue
  • Carlos Barros

Abstract

This paper analyses poverty reduction though informal trade in Mozambique, using questionnaire data and a logit model. The Mozambique economy is dominated by informal trade. Informal trade is an alternative to inexistent formal jobs and represents a strategy for escaping poverty. Results indicate that informal traders adopt this strategy as an alternative to formal jobs, and that there is an awareness that this strategy is adopted as a means of evading poverty. Other covariates enable the clarification of this relationship in the context of the theoretical background. Policy implications are derived.

Suggested Citation

  • Andes Chivangue & Carlos Barros, 2017. "Poverty and Informal Trade," CEsA Working Papers 151, CEsA - Centre for African and Development Studies.
    • Handle: RePEc:cav:cavwpp:wp151
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    References listed on IDEAS

    as
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