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The impact of institutions and policy on informal economy in developing countries : an econometric exploration

  • Rei, Diego
  • Bhattacharya, Manas
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    This paper shows empirical tests for the determinants of informal economy separately in terms of (i) income generation in the informal economy in proportion to the GDP and (ii) the proportion of employment in the informal economy to the total non-agricultural employment. Drawing on previous findings and their policy implications, the paper attempts to estimate statistically more encompassing and robust models to assess how a mix of policies and institutions impact informal economy.

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    File URL: http://www.ilo.org/public/libdoc/ilo/2008/108B09_94_engl.pdf
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    Paper provided by International Labour Organization in its series ILO Working Papers with number 413498.

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    Length: 49 pages
    Date of creation: 2008
    Date of revision:
    Publication status: Published in Working paper series, International Labour Office.
    Handle: RePEc:ilo:ilowps:413498
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    1. Tanzi, Vito, 1999. "Uses and Abuses of Estimates of the Underground Economy," Economic Journal, Royal Economic Society, vol. 109(456), pages F338-47, June.
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    7. Devarajan, Shantayanan & Ghanem, Hafez & Thierfelder, Karen, 1997. "Economic Reform and Labor Unions: A General-Equilibrium Analysis Applied to Bangladesh and Indonesia," World Bank Economic Review, World Bank Group, vol. 11(1), pages 145-70, January.
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    12. Frey, Bruno S. & Weck-Hanneman, Hannelore, 1984. "The hidden economy as an 'unobserved' variable," European Economic Review, Elsevier, vol. 26(1-2), pages 33-53.
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    16. Michael J. Pisani & José A. Pag�n, 2004. "Self-employment in the era of the new economic model in Latin America: a case study from Nicaragua," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(4), pages 335-350, July.
    17. Banerji, Arup & Ghanem, Hafez, 1997. "Does the Type of Political Regime Matter for Trade and Labor Market Policies?," World Bank Economic Review, World Bank Group, vol. 11(1), pages 171-94, January.
    18. Panayiota Lyssiotou & Panos Pashardes & Thanasis Stengos, 2004. "Estimates of the black economy based on consumer demand approaches," Economic Journal, Royal Economic Society, vol. 114(497), pages 622-640, 07.
    19. Diwan, Ishac & Walton, Michael, 1997. "How International Exchange, Technology, and Institutions Affect Workers: An Introduction," World Bank Economic Review, World Bank Group, vol. 11(1), pages 1-15, January.
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