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Informal Sector in Developed and less Developed Countries: A Literature Survey

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  • Klarita Gerxhani

    (University of Amsterdam)

Abstract

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

Suggested Citation

  • Klarita Gerxhani, 1999. "Informal Sector in Developed and less Developed Countries: A Literature Survey," Tinbergen Institute Discussion Papers 99-083/2, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:19990083
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    More about this item

    Keywords

    Formal and Informal Sectors; Tax Evasion; Public Choice.;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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