Search

This study explores the impact of insurance services and the sustainability of businesses in the Nigerian informal sector. The analysis relies on extant literature sourced from various sources to develop an understanding of the current trends of insurance services in the Nigerian informal sector and develop a suggested model for improved insurance service delivery in the Nigerian informal sector. Findings show that stakeholder commitment is necessary for better impact of insurance services in the sector. The conclusion emphasizes the possibility of business sustainability through consolidated insurance services among stakeholders in the sector. Part of the suggestion for further research is the need for a wider focus on insurance practices both in the formal and informal sectors of the Nigerian economy. This is coupled with an exploratory view on the impact of policy development on insurance support to business activities in the Nigerian informal sector. [ABSTRACT FROM AUTHOR]

This paper examines the nexus between shadow economy and income inequality in the West African region. The study applies second-generation panel estimation techniques to analyze the effect and the direction of causation between the variables. The results reveal that the shadow economy reduces income inequality in the region in both short-run and long-run estimations. A similar result is documented when alternative estimation techniques are employed. In addition, the panel causality results show a bidirectional relationship between shadow economy and income inequality in the West African economy. The implications of the study are discussed. [ABSTRACT FROM AUTHOR]

Does terrorism contribute to the growth of the shadow economy? While extensive literature has delved into the causes and consequences of terrorism, little has been studied on its impact on the shadow economy. Employing data on terrorism and the shadow economies of 116 countries from 1990 to 2017, we demonstrate that terrorism results in an increase in the size of the shadow economy and that the effect is larger in autocracies. We argue that the economic and social impacts of terrorism create environments that reinforce both exit and exclusion factors through the erosion of institutional trust and social capital, ultimately incentivizing or compelling actors to seek alternative methods of economic activities. Furthermore, a lack of free and horizontal information-sharing venues to address public fear and repressive counterterrorism measures in autocracies further hamper the economic pursuits of individuals, businesses, and foreign investors, facilitating their engagement in informal economic activities. [ABSTRACT FROM AUTHOR]

This article undertakes a socio-legal analysis of India's changing labour laws and situates migrant workers within the broader context of the changing relations between state, capital, and labour amid the reforms that were introduced in 2019–2020. It illustrates the precarity of migrant workers and the possibility of their legal exclusion from the revised labour codes, especially in the context of the COVID-19 pandemic-led lockdowns. The new codes reduced the number of establishments under regulation and diluted provisions that can hold contractors and employers accountable, which increases the scope for exploitation of workers and has serious implications for the rights of migrants. The labour law reforms, we argue, appear to have favoured capital in its relations with workers and have increased the degree of informality in a wide range of industries. Inter-state migrant workers may find themselves excluded from protective provisions that hold employers accountable for their treatment and this may make them more vulnerable in the informal sector. The article concludes that this push by the state to boost the 'ease of doing business' via precarious forms of employment and whittling away the protections of inter-state migrant workers may be far more detrimental than expected. [ABSTRACT FROM AUTHOR]

This study illustrates how incarcerated Latinx people create alternative social worlds or queer worldmakings as they negotiate everyday life in prison. I explore how these queer Latinx worldmakings are created and lived through the formation of chosen families or familias and the organizing of family dinners. Latinx queer worldmakings are temporary productions of social worlds that facilitate navigating life in the present while being queer and Latinx to resist as well as reconfigure disciplining heteronormative and white supremacist processes. It is the process of performing and creating a present that is oriented towards the future. I argue that such queer Latinx worldmakings counter white heteronormative social-spatial norms and carcerality, while also providing important lessons on what it means to live, love, and make place in and beyond the prison. The Latinx incarcerated women participants queered prison life by engaging in informal economies, negotiating relationships with correction officers, and securing ingredients for family dinners. By using an autoethnographic/testimonio approach and conversations with an incarcerated family member and friends, I explore two ways Latinx queer worldmakings are enacted: the creation of chosen families, and the organizing of family dinners. [ABSTRACT FROM AUTHOR]

This study contributes to the sustainable development literature by investigating the impact of the shadow economy on sustainable development in a panel of 30 African countries over a period of 2000–2017. The study employs parametric and nonparametric panel estimation techniques. The novel moment panel quantile regression method is also used to produce robust outcomes across the distribution of the explained variable in the presence of location shifters, scale variants, endogeneity, and outliers. The results reveal that the shadow economy reduces sustainable development in Africa. The study concludes that conscious efforts are needed to ensure that the shadow economy issue is addressed to enjoy the benefits of sustainable development in the African region. [ABSTRACT FROM AUTHOR]

How do changes in inflation and financial market development affect the size of the shadow economy? Previous studies show that lowering the tax rate, coupled with increasing the level of tax enforcement through policing and imposing high penalties for tax evasion may reduce the size of the shadow economy. While increasing the level of enforcement may be a viable strategy, most developing countries are unable to effectively enforce their tax laws. Based on empirical observations, we suggest that monetary authority could play an important role in this regard. Using a two-sector dynamic general equilibrium model of a small open economy, we demonstrate how monetary policy can be used to reduce the size of the shadow economy. The results suggest that, conditional on access to credit, a rise in inflation leads to a reduction in the size of the shadow economy. With little or no access to credit, such a policy will be ineffective. We evaluate alternative policy measures to achieve a targeted size of the informal sector. [ABSTRACT FROM AUTHOR]

This paper looks at the transition of workers in the MENA region between formal and informal jobs during the COVID-19 pandemic, and investigates whether trade policy could be adopted as a measure to enhance the transition of workers from the informal to the formal sector. We use the combined COVID-19 MENA Monitor Household Survey constructed by the Economic Research Forum for 5 MENA countries and 11 sectors. This topic is timely and critical for the MENA region where informal employment is widespread, applied tariffs are still high, and female labor participation is low. Our results show that: first, fewer trade restrictions are associated with an increased probability for the worker to become formal and this effect is more pronounced post-pandemic. Second, fewer trade restrictions are linked to an increase in the probability of becoming formal for blue collars only, with an insignificant effect on white collars. Third, fewer trade restrictions are associated with an increase in the probability of men to become formal, with an insignificant effect on women. Finally, the effect of trade policy on job formality depends on the sectoral occupation of the individual with this effect being more pronounced in agriculture and manufacturing relatively to services sectors. [ABSTRACT FROM AUTHOR]

Can and does realism explain the linkage between China’s economic advancement and its ever-increasing hard power and global influence? Realists assert that a growth in a nation’s economy triggers an upsurge in its craving for military or security advancement and power. Since the commencement of China’s ‘opening policy,’ its economy has witnessed tremendous hikes, being ranked second to the US economy. A vital coincidence of this is the ever-increasing attempt to modernising its military and general security systems. Of major concern is China’s recently established foreign military base in Djibouti in the ‘Horn of Africa.’ Realists have suggested that in such a Hobbesian world, Beijing will employ its economic power to assert its security interests. Analysing this linkage through a realist perspective, using case studies and historical analogies, the article concludes that realism best provides reasons for the phenomenon. [ABSTRACT FROM AUTHOR]

AbstractProtracted displacement of refugees and IDPs (internally displaced people) is one of the most critical humanitarian problems today. Legislation often prohibits refugees’ rights to work, move beyond camps, or attain citizenship, while IDPs lack access to security and services. New approaches are urgently needed to overcome barriers to economic integration of displaced people’s livelihoods and enterprise as a stepping-stone to broader social integration. Drawing on refugee, development and informality literatures, this paper proposes a new Displacement Economies Framework, a theoretical and programming tool that helps bridge the humanitarian-development divide and highlight the agency and collective economic contribution of displaced people. [ABSTRACT FROM AUTHOR]

Assessing the shadow economy and its major determinants has been an important part of economic literature over the past few decades. In this article, we analyse the impact of exchange rate volatility on the presence of the shadow economy for the current 38 OECD countries over the period of 1991–2021 in both a linear and nonlinear manner. We provide the opportunity to test whether an exchange rate adjustment may follow a nonlinear path and analyse the asymmetric impact of exchange rate volatility on the shadow economy. We estimate a linear ARDL model for each country and find support that exchange rate variability significantly affects the shadow economy both in the short run and long run in most countries both in linear and nonlinear models. However, by estimating a nonlinear ARDL model, we find an asymmetric exchange rate volatility effect in all 38 countries concluding that exchange rate volatility and risks associated with it significantly affects the shadow economy. Thus, it is crucial that this group of nations adequately implement financial policies to minimize this risk. [ABSTRACT FROM AUTHOR]

This paper examines whether there is a difference in the hidden economy's set of determinants across developed and developing countries. Applying extreme bounds analysis (EBA) to a cross-sectional dataset of 33 developed and 97 developing countries, we find a considerable variation in the determinants of the hidden economy across developed and developing countries. The results show that internet usage, inflation, financial development, poverty, and monetary freedom are robust determinants of the hidden economy exclusively in developing countries. Whereas the time required to start a business and GDP per capita growth play a crucial role exclusively in developed countries. Remarkably, the property rights index is the only determinant that is robust in both types of countries. These findings offer important insights for policymakers seeking to address the challenges posed by the hidden economy. [ABSTRACT FROM AUTHOR]

North Koreans have relied on the shadow economy since the collapse of socialism in the 1990s, but little is known about the degree to which informal markets have influenced the country's everyday politics. Based on a large-scale survey of defectors, as well as interviews with almost 100 defectors, including some who had been high-ranking officials prior to leaving North Korea, this article finds that the shadow economy has elicited many changes. First, informal marketisation has affected social practices in the workplace, such as reduced job attendance, decreased participation in mandatory organisational meetings, and a strengthened public perception that official job allocations are unfair. Second, the shadow economy has spread unfavourable views of the official welfare system, leading people to prefer life in the market to their past reliance on the command economy. Third, the shadow economy has led to rampant corruption, strengthening popular perceptions that officials are corrupt and law enforcement is unfair. Finally, the shadow economy has negatively affected public views of the North Korean regime, decreasing loyalty to the leadership and reducing public trust in political institutions. Despite these social transformations, people remain sceptical about the idea of regime change due to tight social control. [ABSTRACT FROM AUTHOR]

The Euro crisis prompted an extensive academic debate on the role of ordoliberalism, a German variant of neoliberalism, in the European crisis politics. This study contributes to the debate by reconstructing the ordoliberal ideology using Michael Freeden's morphological approach. The ordoliberal ideology consists of a common core of political concepts (order, competition, freedom, power, state and Ordnungspolitik), differently interpreted by its various currents. The article, based on selected works of representative ordoliberal authors, compares different currents and generations of ordoliberals. For the first generation, Walter Eucken's and Franz Böhm's Freiburg School, Wilhelm Röpke's sociological neoliberalism and Alfred Müller-Armack's Social Market Economy; for the second generation, Erich Hoppmann; for the third generation, Viktor Vanberg. [ABSTRACT FROM AUTHOR]

North Waziristan is emerging from an episode of terrorism that lasted for decades. Critically examining the dynamics of borderlands, this paper explicates the intersection of informal cross-border trade with the local economy and livelihoods. These socio-economic patterns created by ungoverned geographies, and porous uncontrolled borders foster a dependence on the informal economy, which is largely responsible for financing and perpetuating the instability. The paper signposts that effective border management and ongoing security reconstruction have contributed to rejuvenating the local economy and providing the necessary impetus for post-conflict economic development, keeping widespread unrest and militancy on hold. [ABSTRACT FROM AUTHOR]

This paper examines Egypt's labor market transition dynamics post-Arab Spring based on the two most recent rounds of the Egypt Labor Market Panel Survey conducted in 2012 and 2018. In addition to providing disaggregated level analysis by examining labor market transitions by gender, education, and age groups, our paper provides a cross-country perspective by comparing Egypt's labor market transitions with Jordan's. Regression analyses focusing on transitions to and from the dominant absorbing labor market states in Egypt – public sector employment for both genders, non-participation for women, and the informal sector for men – show that having a post-secondary education is associated with a lower probability of remaining out of the labor force (OLF) for women who were already OLF at baseline, while being married at baseline is found to be a significant predictor for women to stay out of the labor force if they were already so. As for men, the better educated are found to be more likely to secure formal employment, be it in the public or in the private sector, and also more likely to keep their public formal jobs once they secure them. [ABSTRACT FROM AUTHOR]

This article discusses what might be gained from placing informal urban settlements at the centre of analyses of contemporary Fiji. Holding around 20 percent of the total population and growing rapidly, these settlements represent significant demographic movement and economic transformations. Analytically, they offer a paradigm shift. Heterogeneous and complex, racially mixed, transient and rapidly changing, squatter settlements are places that challenge many of the taken-for-granted assumptions used to analyse Fiji, including its politics of ethnic division, rigid social hierarchies, and the centrality of village economies. Instead, they offer new insights into the contradictions, ambiguities, and insecurities that come to signify the contemporary moment for many Fiji citizens. Following Brij Lal's later work, I draw upon ongoing ethnographic research in two urban settlements to ask what centring the narratives of urban squatters themselves, in discussions about nation-building, citizenship rights, and social justice, can teach us about Fiji in the present as well as its potential for future transformation. [ABSTRACT FROM AUTHOR]

The objective of this study is to investigate the effects of the shadow economy on environmental pollution and how this effect depends on the levels of corruption. The study utilizes an annual panel dataset of 127 selected developing countries worldwide, spanning from 2002 to 2018, and employs the Generalized Method of Moments (GMM) technique, which effectively addresses potential endogeneity issues in the model. The estimation results reveal that the shadow economy increases the level of environmental pollution. Furthermore, the results indicate that corruption intensifies the impacts of the shadow economy on environmental pollution. This highlights a significant complimentary between the shadow economy and corruption, indicating that an increase in the levels of corruption will lead to an increase the shadow economy and will also strengthen its harmful impact on environmental pollution through the channel of corruption. Additionally, the estimates remain robust when using alternative measure of the shadow economy. [ABSTRACT FROM AUTHOR]

This research attempts to examine the effects of economic complexity and shadow economy on income inequality for a panel dataset of 99 countries. The two-step system GMM estimation is employed to capture the non-linear relationships among interested variables. The findings indicate that income disparity is significantly and non-linearly linked with economic complexity and gray economy. First, there exists a U-shaped relationship between economic complexity and income disparity. The turning point for which the effect of economic complexity on income inequality changes from negative to positive is −0.732. Second, the impact of the shadow economy on income inequality displays an inverted U-shaped pattern. The estimated threshold above which the marginal effect of the shadow economy on income inequality changes from positive to negative equals 15.6%. Given the complications of these relationships, the governments are advised to take into consideration the situation of these two socio-economic issues when developing income distribution-related policies. [ABSTRACT FROM AUTHOR]

How far did the indigenous accounting of China's historically successful economy parallel Western double-entry bookkeeping (DEB)? We propose a scheme for classifying stages of bookkeeping that approach full DEB, review recently available nineteenth century Chinese accounting manuals and re-examine how far their recommendations reflect practice to be found in original account books contained in the archives of the Zigong brine wells for 1916-1917 (which have been argued to be essentially unchanged from the nineteenth century Qing era and perhaps earlier) and in the surviving accounts of the Fēngshèngtài salt traders of Henan province spanning 1854-1881. We introduce the accounting records we have now discovered from merchanting businesses in Anhui province, which span 300 years and survive from the 1590s onwards. These are all more sophisticated than the 'merchant-banking' accounts in the vast archive of Tŏng Tài Shēng covering 1798-1850, and in the case of the Anhui merchants' accounts comprise 'balance sheets' that include monetary values for physical as well as monetary assets, matching their owners' 'capital'. We tentatively conclude, on the basis of the evidence now emerging, that despite its variety of forms indigenous Chinese style accounting practice may in some cases have captured the structural essentials of DEB's content and functions and might be labelled 'Chinese-style double-entry bookkeeping' ('CDEB'), over which Western bookkeeping had no conceptual advantages. [ABSTRACT FROM AUTHOR]

The subject of entrepreneurship has generated swathes of interest from a variety of stakeholders seeking to address economic challenges in Africa. At the heart of this interest is the fact that the businesses created by entrepreneurs create employment opportunities which, in turn, have the potential to reduce poverty at all levels of African society. Yet, while research into entrepreneurial activity is well established in the developed countries of the western world, there remain large gaps in knowledge about key issues such as why entrepreneurs in Africa start businesses, how these businesses are sustained, and the specific contextual influences and challenges which affect African entrepreneurs' decision-making and behavior. In this introductory paper, we highlight the importance of attempting to understand how African entrepreneurs, working outside the strictures of strong formal institutions, navigate difficult challenges and make decisions using fragments of informal traditions originating from prevalent African philosophies such as Ubuntu. We also draw attention to the need to assess the notion of entrepreneurial business success or failure in Africa from a cultural context perspective which takes into account considerations aside from the solely rational-economic. We conclude with a series of questions which remain largely unanswered but will, we trust, be addressed in future research on entrepreneurship and Africa's cultural context. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of foreign ownership on firm performance in the South African informal sector. Using the data of 1097 informal businesses sourced from the World Bank Enterprises Survey conducted in four Township provinces in South Africa (Gauteng, KwaZulu-Natal, Eastern Cape and Western Cape) in 2020, the paper aims to address two issues: what is the effect of foreign ownership on performance in the South African informal sector and what factors drive foreign-ownership gap in the South African informal sector if it exists? The empirical analysis uses the multivariable decomposition technique and finds a performance gap between locally and foreign-owned businesses in the South African informal sector. A decomposition of factors shows that differences in endowments can explain the bulk of the gap. Discriminatory/unexplained factors, likely capturing the business culture, also play a significant role. Caution is given when seeking to curb foreign business participation in the informalsector. [ABSTRACT FROM AUTHOR]

This study aims to explore the prevalence of immigrant entrepreneurship in Ghana's informal economy through institutional theory. Specifically, the study sought to understand how the elements of the institutional theory (norms, culture, and regulations, which form formal and informal institutions) support or discourage immigrant entrepreneurship in the Sub-Saharan African context, with insights from Ghana. It is qualitative research that adopts an in-depth face-to-face interview with 30 respondents. Analyzing the data from the interviews, the key findings are immigrants' inability to find paid jobs, failure to gather sufficient funds to operate in the formal sector, and the willingness to use innate ability. The Ghanaian culture of hospitality and the government's inability to implement trade regulations have been an enabler to the prevalence of immigrant entrepreneurship in Ghana. The legal frameworks that prohibit immigrants from participating in retailing, especially in the informal economy of Ghana, are well known by immigrant entrepreneurs, albeit it has yet to adhere. Therefore, there is a call for policy measures to address the weak institutional framework, which encourages disregard for the country's laws. Immigrant entrepreneurs who wish to remain in doing business in Ghana must obey the rules or suffer the punishment thereof. [ABSTRACT FROM AUTHOR]

Monopolies constituted one of the main institutions to control the economy from the Ottoman Empire to the Republic of Turkey. Over time, monopolies' roles changed from revenue sources for the sultans' treasuries to assigning foreign debts to debtors, creating a Muslim-Turkish bourgeoisie, structuring property relations by commercializing the economy and finally generating revenues for modernization projects. The new Turkish state also used monopolies to raise funds for its radical modernization and state-building projects. This article examines how low-income consumers, producers and traders coped with monopolies via smuggling during the first two decades of the Republic. It argues that most of what was called smuggling were economic survival methods and the continuation of the practices that had a very long pedigree among low-income people to cope with the high prices of monopoly products due to high taxes and high monopoly profit margins. This article lays out a different interpretation of smuggling as 'social smuggling', which lessened the burden of the monopolies over low-income cultivators, traders and consumers. It argues that this informal economy limited the state's extractive capacity and economic interventionism required for modernization projects. [ABSTRACT FROM AUTHOR]

Informed by the capability approach and critical discourse analysis, this article examines how the development of green skills among master craftspersons and apprentices in the informal sector of Ghana could be promoted for cleaner production and sustainable futures. The findings show that inequality and poverty; cyclical policy trap; sectoral green initiatives and the green coordination gap; and limited human resource capacity including uncoordinated informal learning approaches serve to constrain the development of green skills among master craftspersons and apprentices in the informal sector of Ghana. To address these challenges, the current study proposes the development of a framework that (1) harmonises the different sectoral initiatives and strategies on green skills to avoid the cyclical policy trap; (2) expands the current green Technical and Vocational Education and Training (TVET) agenda to include green skills development for individuals in the informal TVET sector; (3) closes the coordination gap in government green initiatives by creating an agency responsible for national green agenda; and (4) creates clear qualification models and strategies for the development of green skills in the informal sector. [ABSTRACT FROM AUTHOR]

This paper analyses Low-Income Country (LICs) firms' use of open innovation (OI) in overcoming various innovation constraints. We disaggregate local and foreign sources of innovation using a new measure of international openness. A survey of 501 manufacturing firms in Ghana reveals that OI is employed to address cost, knowledge, management, and market barriers. Knowledge and cost constraints lead to a broader and deeper search whereas cost barriers lead to a greater domestic search. Firms that faced market barriers significantly search more internationally while those facing infrastructure barriers tend to search less broadly and deeply for external knowledge. The substantial informal sector in Ghana hampers OI. Results also indicate an inverted-U-shaped relationship between the breadth of openness and innovation performance. This paper contributes to the literature by providing the first large firm-level survey-based evidence of OI in a LICs context, and by introducing a new measure of international innovation openness. [ABSTRACT FROM AUTHOR]

This research considers a new dimension of the effects of the underground sector by examining the spillovers on cryptocurrency holdings. Cryptocurrencies offer a relatively greater ability to dodge taxes and ensure the anonymity of holders, providing attractive avenues for underground operators to stash their informal-sector earnings. Our results, based on data from more than 50 nations, show that a greater prevalence of the underground economy in a nation is indeed associated with greater cryptocurrency holdings. This result holds across an alternative measure of the shadow economy, and when the bi-directional causality between the shadow economy and cryptocurrency holdings is considered. In other noteworthy findings, greater FDI crowded out cryptocurrency holdings, while greater financial globalization and greater economic uncertainty, ceteris paribus, increased them. [ABSTRACT FROM AUTHOR]

This article examines the intertwining relationship between informality and education-occupation mismatch (EOM) and the consequent impact on the workers' wages. In particular, we discuss two issues — first, the relative importance of informality and EOM in determining wages; and second, the relevance of EOM for formal and informal workers. The analysis reveals that although both informality and EOM are significant determinants of wages, the former is more crucial for a developing country like India. Further, we find that EOM is one of the crucial determinants of wages for formal workers, but it is not critical for informal workers. The study highlights the need for considering the bifurcation of formal-informal workers to understand the complete dynamics of EOM especially for developing countries where informality is predominant. [ABSTRACT FROM AUTHOR]

The restoration of precolonial authorities in contemporary Uganda has inspired the revival of practices constitutive of local identities. The article focuses on the role of (re)distribution in the formation of Ganda identity in the Buganda kingdom, by exploring the moral conundrums lived by workers in Kisekka Market (Kampala). The article describes two principles underpinning economic relations. First, it explores culturally approved patronage and downwards distribution which, given the pyramidal structure of society, translates simultaneously into forms of redistribution and the upward submission of subjects to a higher order (clans and kingdom). This two-way process is called 'nested redistribution'. Second, it shows how culturally approved forms of (re)distribution conflict with individual accumulation, culturally condemned but paradoxically key to afford redistribution itself. The ethnography describes how tensions between these principles are resolved, making use of the same categories (culture, morality) that engender them in the first place. [ABSTRACT FROM AUTHOR]

This article explains independent Uzbekistan's transformation starting from its integration into the global economy as a primary commodity exporter. It argues that, in line with other resource-rich countries of the Global South, this transformation exhibited two enduring and interlinked features, namely rent-subsidised 'backward' industrialisation and the rise of a vast relative surplus population (RSP). First, the end of collective agriculture expropriated most of the Uzbek rural population from the land, so rents from cotton exports could subsidise 'backward' industries manufacturing for the domestic market. Second, as these industries could only absorb a minority of the population due to their limited (largely domestic) scale of production, the majority was turned into a vast RSP that struggles in the informal sector, including as labour migrants. Third, cotton's replacement by gold and natural gas as the main export commodities laid the basis for the current liberalisation. Still, Uzbekistan endures as a raw material exporter, hence as a 'backward' industrialiser and reservoir of RSP. As such, the paper problematises the transition literature's framing of Uzbekistan as an example of failed reform or successful developmentalism, showing instead how these enduring features of its development paralleled similar dynamics in other raw-material-exporting countries of the Global South. [ABSTRACT FROM AUTHOR]

Exploring effective tools to control the rampant expansion of the informal economy is critical to achieving the Sustainable Development Goals (SDGs). Based on balanced panel data for 19 selected Latin American and Caribbean countries for the period 2008–2017, this study employs fixed-effects estimation, limited information maximum likelihood estimation, and system generalized method of moments estimation to investigate the direct and indirect effects of information and communication technologies (ICT) diffusion on the size of the informal economy. The findings suggest that ICT diffusion can significantly reduce the size of the informal economy in LAC. Moreover, the dampening effect of ICT on the informal economy is more significant in countries with lower levels of financial inclusion. Accordingly, we recommend strengthening ICT sector development to enhance financial deepening and government efficiency and thus reduce informality in LAC. [ABSTRACT FROM AUTHOR]

This study examines factors influencing Uzbekistan's shadow economy rate, with a focus on GDP, corruption index, tax rate (TR), and the unemployment rate. Using a quantitative approach, we analyse secondary data to test our research hypotheses. The results indicate positive correlations between GDP and corruption index with the shadow economy rate, while tax and unemployment rates exhibit negative correlations. An expansionary fiscal policy contributes to the positive GDP-shadow economy correlation, while corruption motivates participation in the informal sector. Conversely, changes in tax law discourage formal sector involvement, leading to a negative correlation. Similarly, the unemployment rate negatively correlates due to partial income reporting for tax evasion. Our study provides original insights into the drivers of Uzbekistan's shadow economy, which can inform policymakers when addressing this issue. Paper emphasises the impact of fiscal policy, corruption, taxation, and unemployment on shadow economy growth, aiding informed policy decisions. [ABSTRACT FROM AUTHOR]

This article draws from ethnographic and oral history research to explore the intersection of cigarette smuggling and tribal relationships in Cizre, a Kurdish city located near Turkey's border with Syria and Iraq. Cigarette smuggling serves as a primary source of income for the city's tribal communities, operating beyond the state's oversight and outside the 'secure' networks of the regulated market. This informal economy necessitates active collaboration amongst participants to effectively avoid state surveillance, and establish partnerships and substitute networks for coordinating the transfer of cigarettes, as well as for securing credit – all rooted in their tribal affiliations. I suggest that due to its significant reliance on tribal networks, the cigarette smuggling industry has allowed the Kurdish tribes to preserve their influence within an urban setting, even after their detachment from their pastoral economy and fragmentation as a result of enforced migration. I argue that the prominent role played by tribes in orchestrating the cigarette smuggling economy is indicative of the redistributive function that these institutions have increasingly assumed for their constituents. [ABSTRACT FROM AUTHOR]

Most governments around the world are fostering innovation and entrepreneurial systems with a prominent role for venture capital (VC) support policies. However, the debate about the role and impact of VC support policies is still focused on the countries of the Global North. In this context, this paper seeks to describe and analyse the role that the state has played in the emergence and development of the VC industry in India and Brazil, two of the biggest economies of the Global South. We adopt a systemic and evolutionary perspective under the general context of a renewed role for the state in financing innovation. We offer interesting questions and implications to discuss the challenges, scale and impact that could be expected from VC industry support policies in the Global South countries. [ABSTRACT FROM AUTHOR]

The India–Bangladesh border is the world's fifth longest land border, a focus of political tension in an area with vibrant informal economies. Cross-border communities share culture and language and informal cross-border trade (ICBT) is well-established. This article explores ICBT on the Indian side of the border, examining its actors, power relations and spatial dimensions, and the vulnerabilities of those involved. Debates on the social and cultural roots of ICBT, and the vulnerability of small-scale entrepreneurs to a complicit state, and powerful middlemen in lucrative sectors of ICBT, inform the analysis. The trade is theorized through the lens of jugaad, the Indian term for 'making do' and 'instinctive creativity'. The research draws on case studies of three cross-border sectors, everyday trade in small household goods, the politically sensitive cattle trade, and cross-border medical/healthcare services. The mechanisms of jugaad are seen to some degree in all three case studies, but heavy state regulation gives advantage to controlling middlemen and state officials. Finally, we argue that ICBT is a critical component of the wider political economy in the border regions of West Bengal, and that the forgotten sector of ICBT could, if supported by light-touch regulation, have important poverty-reduction potential in enabling livelihoods for marginalized border communities. [ABSTRACT FROM AUTHOR]

The article provides insight into one of the most prevalent forms of the second economy in the Estonian SSR – small-scale speculation and black market profiteering – through the results of narrative research conducted among a small group of speculators who were involved in the smuggling of Western goods behind the Iron Curtain between the mid-1970s and late-1980s. The empirical material comprises five in-depth interviews that focus on various illegal and semi-illegal practices and strategies employed to establish and sustain the flow of contraband consumer items. [ABSTRACT FROM AUTHOR]

The transition to a low-carbon and climate resilient economy is a process of heavy restructuring of the productive network, during which sunset industries are in decline or even disappear, while sunrise industries emerge and flourish. This process affects all aspects of the economy: the demand and the supply side, the public and the private sector, the financial structure and the informal economy. In this article, we propose a holistic framework that assesses the macroeconomic vulnerability that emerges from a low-carbon transition, especially in developing economies. We consider vulnerability as a multidimensional phenomenon and, thus, pay attention to all fiscal, social, monetary, financial and external dimensions of the economy. We, then apply this framework to the Colombian economy. We use indicative variables of vulnerability, in all its aspects, and a stock-flow consistent growth model in order to monitor their evolution across time. We consider two scenarios related to a reduction of real fossil fuel exports of Colombia and a global rise in interest rates. Results indicate that the more delayed is the global transition, the higher the vulnerability of the Colombian economy. Similarly, global monetary tightening becomes an obstacle in the transition process, as it induces vulnerability stemming from the financial and external side of the economy. [ABSTRACT FROM AUTHOR]

Objectives. The informal economy in Tanzania, as in many other developing countries, presents numerous workplace safety issues. This study was conducted in stone quarrying (SQ) and soil brickmaking (SBM) sites to assess workers' awareness and perceptions of safety practices, identify common workplace risks and hazards, and evaluate challenges hindering the implementation of workplace safety culture. Methods. A total of 173 workers responded to a semi-structured questionnaire and 15 workers were interviewed. Data were summarized using Stata (version 15). Results. More than 95% of the SQ and SBM workers were exposed to ergonomic hazards and related health risks, due to low awareness (90%) and unavailable leadership structures (>96%) for enforcing and overseeing the implementation of workplace occupational health and safety (OHS) regulations. Conclusion. Due to the lack of regulation and oversight, workers in the informal sector in Tanzania often face hazardous conditions that put their health and safety at risk. Workers use self-intuitions, observations, injuries and near miss incidences to improvise control measures and minimize hazardous risks. This study provides baseline information that can be used for evidence-based decision-making and policy formulation to safeguard workers' safety and health in the informal sectors of Tanzania. [ABSTRACT FROM AUTHOR]

Despite many schemes, barely 5% of India’s workforce is skilled. In India, there is a shortage of trained workers in the informal hairdressing sector, suggesting the relevance of skill development. This is crucial as one of the Sustainable Development Goals (SDG) emphasizes developing skills for vulnerable groups. Thus, this study uses the example of India to explore skill development, engaging an exploratory approach. The study finds that several skill development initiatives are neglected in the hairdressing sector, and some of the programmes fail to provide the desired results. Therefore, rather than expanding the vocational training system, a comprehensive skill development program is required that improves the socioeconomic conditions of the hairdressers, solves gender inequality in the sector, and the problem of skill development to the vulnerable. [ABSTRACT FROM AUTHOR]

Despite the ongoing debate on the interaction between the informal sector and agglomeration economies in cities, little is known about whether informal agglomeration generates the wage premium in cities in developing countries. This paper provides empirical evidence on the impacts of urbanization and localization, separated from formal and informal sources, on the earnings of informal workers and how the concentration of informal workers affects the wages of formal employees in cities in Vietnam. Using data from the 2013-2020 Vietnam Labor Force Surveys, this paper shows higher wages in bigger cities. In addition to workers' skills and local non-human endowment, agglomeration generates the wage premium in cities. Nevertheless, the impacts are different between small and large cities. Our results show that while informal workers benefit from urbanization and localization in large cities, their existence is over-concentrated in small cities and crowds out the formal sector in large cities of Vietnam. Thus, urban development policies should focus on the over-concentration of informal sector workers in cities. [ABSTRACT FROM AUTHOR]

This study examined how credit cooperative loans affect women entrepreneurship. Semi-structured interviews were conducted with 14 women entrepreneurs from three Cooperative Lending groups in the Ashaiman Municipality of Ghana. We found that credit cooperative lending groups support and promote women entrepreneurship by providing their members with access to long-term interest-free credit support to start or expand their businesses. We also found that by providing their members with training and capacity-building opportunities to improve their skills for sustainable businesses and their income to pay back their loans, credit cooperative lending groups significantly contribute to women entrepreneurship. The contribution of this study is that it sheds light on how credit cooperative loans help to alleviate the difficulties that women entrepreneurs of the informal sector in Developing Countries face to have access to financial resources. [ABSTRACT FROM AUTHOR]

This paper examines the determinants of financial performance as perceived by Togolese female managers operating in the informal sector. The analysis is conducted using the partial least squares methodology based on data collected from 208 female-managed enterprises throughout Togo. The results indicate that business environment constraints, stereotypes toward females' managerial abilities, female entrepreneur's risk appetite, and being part of a network are associated positively and significantly with perceived financial performance, while difficult access to finance and cultural factors influence it negatively and significantly. Furthermore, the age of the enterprise is a significant determinant of the perceived financial performance. The positive effect of the business environment constraints is contrary to our expectations. This may be explained by the number of enterprises operating informally. [ABSTRACT FROM AUTHOR]

When seeking to increase their tax revenues, policy makers face a likely tradeoff between decreasing personal income tax rates (making formalizing more attractive and potentially contributing to revenue) and alternatively raising tax rates (potentially slowing down the formalization of the economy if people prefer informal employment). Evidence on formal versus informal earnings and job characteristics in different sectors is limited in African countries, and in particular very little is known about the impact of tax changes on the extent of informality. This paper therefore estimates the personal income tax responsiveness of the extensive margin of formality, i.e. the propensity to be a formal as opposed to an informal worker, for Ghana, Rwanda, Tanzania, and Uganda, using repeated cross-sections of household data and applying grouping estimator techniques. Perhaps because of labour demand constraints and other frictions, the paper finds non-significant relations between the formal employment share and the formal-informal earnings differences. [ABSTRACT FROM AUTHOR]

About 91% of India's workforce of 520 million is informal, lacking social insurance. However, this paper finds the Social Security Code 2020 wanting, but with potential for universalizing social insurance. The paper spells out the principles that should guide social insurance for informal workers; and presents the design and architecture for extending coverage. It shows how realistically, over the next 10–15 years, social insurance could cover the entire workforce, in accordance with ILO Conventions. It also estimates the fiscal cost of social insurance, for the first five years, and spells out the political economy, fiscal and administrative challenges to universalisation. [ABSTRACT FROM AUTHOR]

Waste picking within the informal sector is essential to solid waste management policy and practice. A healthy number of academic articles have emerged from the practice of waste picking, particularly Ghana, of recent. Nevertheless, a common limitation across many of these articles is the absence of in-depth investigations into the experiences and backgrounds of waste pickers. This study examines the practical aspects of waste picking, uncovering motivational factors that drive individuals to engage in waste picking business and the multifaceted challenges that they encounter. Sixty-one waste pickers were interviewed at the Kumasi Oti Landfill site, and the findings were supplemented with documentary sources and observational data. Through content analysis, exploratory factor analysis, and the relative importance index, our study highlights that despite its necessity for survival, many waste pickers express dissatisfaction and find the waste picking business unpleasant. Additionally, the primary motivational factors for engaging in the waste picking business include lack of jobs, compounded with a lack of general and skilled education as well as social and cultural capital, and the flexibility of the work and family business. Furthermore, our findings underscore the significance of certain challenges, notably low income, health problems and social stigmatisation attached to the work. In light of these findings, it is recommended that government provides socio-economic and social support for waste pickers and facilitate the establishment of cooperatives for waste pickers in the recycling sector. [ABSTRACT FROM AUTHOR]

This paper examines how enforcement of regulations affects firms' decision to operate formally, underground, or exit the market. The firms in our study are landlords of rental properties. Using a unique data set that identifies underground and exited properties, we find that enforcement makes going underground more likely when only fines are issued but less likely when enforcement requires abatement. Additionally, observing higher levels of enforcement among neighbouring properties (general deterrence) increases the likelihood of going underground when abatement is required. These findings are consistent with the predictions of a theoretical framework we develop. Accordingly, the study makes two contributions to the informality literature. First, that whether enforcement has a positive or negative impact on operating underground depends on whether that enforcement requires abatement. Second, it identifies both the extensive margin between informality and formality, and the margin between informality and exiting an industry. [ABSTRACT FROM AUTHOR]

The COVID-19 crisis has been one of the most significant events in recent history. Informal traders who depend on a thriving tourist market have been especially vulnerable to COVID-19. The resultant travel bans affected South Africa's tourism-related informal economic activities. The aim of this study was to determine the effects of the pandemic on informal traders' livelihoods and resilience in Cape Town, South Africa. Tourists have always constituted a large proportion of informal traders' customer base. They are often willing and able to spend more than locals. The impact of travel bans on traders' income, profit margins, and livelihoods has been disastrous. However, many traders have shown commendable resilience. There were obviously limits to the effectiveness of their mitigating strategies. There is an urgent need (from a social justice and a pure economic perspective) for further relief and assistance to supplement street traders' efforts to survive as international tourism recovers. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of economic growth patterns on employment structure, highlighting the effects of the main final demand components' variations. Brazil is an interesting case study, as it has experienced a combination of sustained economic growth, an improvement in income distribution, and a notable increase in job formalization in the 2004-2013 period. We explore how the Brazilian growth pattern contributed to the employment growth and changes in the occupational structure (informal and formal jobs, and wage-level) and provide original insights into the Brazilian labor market in the long 2000s. We find no signs of typical job polarization, as changes in job structure relate to reductions in wage inequality. We develop a structural decomposition analysis to measure the demand components' role in explaining the Brazilian labor market's transformations based on an effective demand input-output model. Drawing on an analysis of cumulative causation between income distribution, household consumption, and occupational structure, we find that induced consumption significantly impacted service and trade industries, increasing the low-wage jobs growth rate. Our analysis suggests that the combination of cumulative causation with government consumption and investment growth is crucial to explain distributive gains and the absence of job polarization in the Brazilian labor market. [ABSTRACT FROM AUTHOR]

This paper offers policymakers a novel tool for calculating employment multipliers. A theoretical model incorporating a non-tradeable employment function is combined with a stochastic frontier methodology to estimate an accurate multiplier. The advantage of this model is that it allows a consideration of unobserved informal employment when estimating the multiplier. We find an employment multiplier effect of 1.2 jobs in the non-tradeable sector for one job in the tradeable sector. Also, the greater the number of skilled consumers, the higher the multiplier indices and the lower the level of informal employment. Moreover, specialised sectors requiring skilled workers also present less informal employment. We use provincial data for Spain over the period 1995–2013. [ABSTRACT FROM AUTHOR]

This study was conducted in 15 artisanal stone quarries (SQ) and 22 soil brick-making (SBM) sites. Specific objectives were to: (i) quantify ambient concentrations of suspended particulate matter (PM) and gaseous pollutants and noise levels at SQ and SBM workplaces; (ii) critically evaluate the potential workplace hazards, and risk factors; and (iii) analyze potential health risks to workers. Gaseous pollutants, PM, and noise levels were measured by using portable digital devices. Social demographic information of 150 workers across the study sites was collected using a questionnaire. Quantitative data were summarized and exploratorily analyzed using Stata software. This study revealed that fuel burning in the SBM releases SPM up to 10-fold and CO gas up to 14-fold above the WHO-recommended time-weighted average exposure concentrations of 16.6 µg/m3 and 0.3 mg/m3, respectively. On average hitting with a pickax in SQ areas released noise levels of about 81.01 ± 6.8 dB[A]. Overall, the SQ and SBM workers were exposed to low concentrations of PM and noise levels when the measurements were taken. Long working hours for repetitive activities in hot-sunny (27.1 ± 2.3 °C) and low outdoor humidity 23 ± 1.5%, potentially increase epidemiological risks to vulnerable individuals and enhance worker exposures to inhalable PMs. Although workplace noise exposure below the regulatory threshold of 85 dB[A] may not cause immediate hearing damage, it can have a significant impact on workers' hearing health, cognitive performance, psychological well-being, and overall productivity. This study provides an overview of workplace conditions rather than an accurate representation of the actual worker exposure levels because personal breathing zone sampling devices were not used. This study provides baseline information for further research and can be used for evidence-based decision-making and policy formulation to safeguard worker safety and health in SQ and SBM sites in Tanzania. [ABSTRACT FROM AUTHOR]