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This article applies a qualitative approach to the legal segmentation analysis developed by Dingeldey et al. (2021), considering exclusion from, and hierarchies of, worker protection. Examining the cases of China, India, Malaysia and Viet Nam, the author finds that several factors distinguish these countries from those in the global North and produce distinct labour market outcomes, namely: in terms of the relative size of the workforce operating outside the effective coverage of employment regulation; legal terminology that is not readily translated into Western languages; and legal history, especially as regards the mismatch between statutory frameworks and the labour market resulting from colonialism. [ABSTRACT FROM AUTHOR]

The development of the world economy created its own footprint as a result of the phenomenon. 1/3 of that space is owned by the informal economy also referred to as the Local Economy or System D. The connotation is to imagine a work phenomenon that is truly universal without a clear basis for labor. This increasingly sophisticated and world-class phenomenon takes the place of economic space left by the formal economy. The manipulation of the vast resources, the dynamic practices that take place in the legal and illegal dimensions, provide a guarantee of employment shadowed by survival. This paper traces the phenomenon occurring on the Sebatik Islands of Malaysia and Indonesia. The study method was qualitative based on the interviews of key informants. The results suggest that this phenomenon occurs due to the fact that economic space and opportunities can be exploited for the sake of sustainability in meeting economic demands, especially marginalized groups at the border. [ABSTRACT FROM AUTHOR]

Improved estimates of the Malaysian Shadow Economy (SE), illegal money and corrections to the magnitude of SE using the ARDL technique based on the modified Currency Demand Function Model (CDFM) from 1972 to 2012 are provided in this paper. This study rectifies the failure in previous studies to capture the positive and symmetric relationships between the demand for money and per capita income. The use of the scale of real GDP in the Modified CDFM is necessary methodologically to obtain an accurate estimation of SE. This study combines the demand rate of deposits with circulated money as dependent variable, which is more liquid and thus may end up in SE. It considers inequality of the velocity of money in both economies (SE and the formal economy). The variables of opportunity cost of using money in their ratio level rather than logarithm form are used in the modified CDFM. The size of the SE in Malaysia has been fluctuating and averaged around 42.53% of GDP. [ABSTRACT FROM AUTHOR]

Literature on the estimation of the size of shadow economy at national level is well studied. However, estimation of the size of shadow economy at state level is still scarce. This study attempts to estimate the size of shadow economy to state GDP ratio for the states of Malaysia by employing the Multiple - Indicators - Multiple - Causes (MIMIC) model using panel data from 13 states of Malaysia from 2006 to 2013. Additionally, the relationship between size of state shadow economy and other state level variables was investigated and analysed. Several findings were obtained. First, rural population and rural labour play significant roles in contributing to the development of shadow economy in the states of Malaysia. Second, smaller and more advanced states have smaller shadow economy to state GDP ratio, while the two East Malaysia states, Sabah and Sarawak, are by far the states with the largest shadow economy to state GDP ratio among all Malaysia states. Third, shadow economy is positively affected by crime index and primary sector productions, and negatively affected by state GDP growth. State shadow economy decreases if the state is ruled by opposition party. This study suggests better regulations in rural economy, rural labour, criminal activities and primary sector contributions to reduce shadow economy activities in the states of Malaysia. [ABSTRACT FROM AUTHOR]