Formal and Informal Sectors in China and India: An Accounting-Based Approach
This paper discusses the estimation of a social accounting matrix that distinguishes between formal and informal activities for China and India for 2000 and 1998-99 respectively. Wage shares for the formal/informal employment for China and net domestic product shares for the formal/informal sectors for India are being applied as weights to the input-output tables and flow of funds tables provided by official statistics. While some estimation techniques used in this paper remain vulnerable to criticism, the proposed methodology is a first step towards an integrated approach to account for the dualism of many economies in the developing world. The results are important data input for any policy-driven CGE model for developing countries.
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|Date of creation:||2009|
|Date of revision:|
|Publication status:||Published in Economic Systems Research, 2010, 22(2) 129-153.|
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- Ravallion, Martin & Shaohua Chen, 2004.
"China's (uneven) progress against poverty,"
Policy Research Working Paper Series
3408, The World Bank.
- Angus Deaton, 2003. "Adjusted Indian Poverty Estimates for 1999-2000," Working Papers 200, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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