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Analyse De L'Economie Informelle En Cote D'Ivoire : Determinants Et Taille
[Analysis Of The Shadow Economy In Cote D'Ivoire: Determinants And Size]

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  • Koffi, Siméon

Abstract

The shadow economy exists in all countries (developed and developing). This sector, which in many countries escapes any measure, causes distortions in the formal economy. It is to reduce its effect on the economy that this study was initiated to identify its determinants and its size. For the econometric analysis the MIMIC approach was preferred. The results of the study show that of the four causal variables identified (labor force, growth rate of the economy, financial development, and tax burden) only two have significant effects on the size of the informal sector: financial development and tax burden. The latter two variables have positive multiplier effects on the informal economy: 1% increase in one of these determinants could increase the size of the informal economy by almost 2%. Over the study period, 2000-2020, the size of the informal economy (% of GDP) in Côte d'Ivoire is in the range [41; 47].

Suggested Citation

  • Koffi, Siméon, 2022. "Analyse De L'Economie Informelle En Cote D'Ivoire : Determinants Et Taille [Analysis Of The Shadow Economy In Cote D'Ivoire: Determinants And Size]," MPRA Paper 114472, University Library of Munich, Germany, revised 06 Sep 2022.
    • Handle: RePEc:pra:mprapa:114472
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Shadow economy; MIMIC; causal variables;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • D0 - Microeconomics - - General

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