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In Kinshasa, chronic crises and lack of access to employment, quality education, and other resources contribute to the social exclusion of a growing number of disadvantaged young people. They are deprived of the possibilities of leading a decent life and alienated from both the market and legitimate authorities. Despite their social, political, and economic marginalization, many of these precarious Congolese youth have proved adept at improvising livelihoods in the informal economy and seek out ways to be agents of social change. [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]

The study examines how legislative instability in tax laws affects the growth of informal economic activities in Egypt. It suggests that unclear or unsustainable tax regulations drive a shift towards the informal sector, fueled by benefits like tax evasion and reduced compliance costs. To encourage voluntary integration, the study proposes measures such as transparent tax laws, awareness campaigns on tax compliance benefits, and simplification of procedures. It advocates for policymakers to prioritize creating an environment conducive to integration over punitive measures. By fostering a fair tax system and addressing underlying factors driving informality, Egypt can boost tax revenue, ensure fairness, and promote sustainable growth. Employing a descriptive-analytical approach, the study analyzes secondary data from official reports, academic literature, and relevant publications. This method allows for a systematic examination of tax legislative disruptions' impact on informal economic activities. It facilitates understanding the dynamics of tax regulations and their effects on informality by analyzing diverse information sources. This approach ensures reliable insights into the relationship between tax laws and the informal economy in Egypt. [ABSTRACT FROM AUTHOR]

In November 2023, Argentina elected Javier Milei, a right-wing former television personality, as its president. Milei promised to implement radical, libertarian policies such as abolishing the central bank and eliminating public institutions. His victory, with 56 percent of the vote, was supported by sections of the working class, particularly young males in the informal sector. This election marks a potential transition to a new political and social regime in Argentina. The country has previously been governed by populist left and neoliberal right governments, but neither type of government has been able to fully address the country's economic challenges. [Extracted from the article]

This article delves into a compelling case study examining the intricate connection between plastic waste management in Morocco, with a particular focus on Casablanca and Rabat, and the disparate working conditions experienced by workers, both in formal and informal roles, within this sector. All of this unfolds within the broader context of the sector's shift towards the principles of the Circular Economy. To accomplish this, we draw upon insights from a diverse array of experts in the field, as well as input from key stakeholders, including public administration overseeing the transition process, representatives from the private business sector, and the informal waste collectors themselves. Through this multifaceted approach, we gain a comprehensive understanding of the intricacies and subtleties surrounding the evolution of waste management practices in Morocco. Additionally, it enables us to pinpoint the primary challenges associated with achieving social justice in the context of transitioning toward a Circular Economy. [ABSTRACT FROM AUTHOR]

This paper is one of the first which provides an in-depth quantitative analysis of how the development of the tourism industry impacts on the size of the shadow economy of a specific destination. The paper employs time-series techniques and annual data from 1960 to 2018 from Turkey. First, the size of the shadow economy is estimated using the electricity consumption method. The estimates are then used to assess the effect of tourism development on the size of the shadow economy. The findings show that there is a negative relationship between the two. A 1% increase in international tourism arrivals leads to a 0.21% and 0.316% fall in the size of the shadow economy in the short-run and long-run respectively. It implies that as the tourism sector develops, it becomes instrumental in modernising the Turkish economy leading to the movement of resources from the shadow economy to the formal sector. In the long-run the effect of the tourism industry in reducing the size of the shadow economy surpasses that of the financial sector of Turkey. [ABSTRACT FROM AUTHOR]

Underpinned by resource-based and disruptive innovation theories, this study examines the effects of informal players' perceived threat on the formalized tour operators' operational performance and customer bonding. The study involved a sample size of 130, collected from the inbound tour operators in Zanzibar. Using partial least squares (PLS-SEM) to analyze the data, our study found that the perceived threat of informal players is positively associated with service quality, which is linked to increased operational performance. Equally, operating performance was found to have a direct positive impact on customer bonding. While perceived threat directly enhances operational performance, customer bonding is only enhanced through service quality. Finally, the study advances the literature on tourism by providing theoretical and practical implications and recommending future studies. [ABSTRACT FROM AUTHOR]

As a form of informal economy, the street-stall economy has a positive role in providing employment opportunities, but at the same time, there are problems such as low quality of employment and insufficient social security. Therefore, the question explored in this paper is whether the quality of informal economy employment generated by the ground stall economy is an effective job and whether it can be a way for low-income groups to earn a living. In this paper, the composition and proportion of the intangible costs of the stall economy and the average monthly income of the urban low-income group are analyzed to determine whether the informal jobs created by the stall economy can meet the basic needs of the urban low-income group. Taking the average per capital income of the low-income group as the standard, if the stall economy can steadily bring more than the standard net income to the low-income group, it means that the informal jobs created by the stall economy are effective jobs. The study shows that nearly 30% of the vendors in the statistics of the monthly net income of the street-stall economy are unable to reach the average income of the low-income group in the city, indicating that the informal economy jobs created by the street-stall economy are of low quality and are not enough to satisfy the basic living needs of the lowest-income group and that the proportion of effective jobs is low. [ABSTRACT FROM AUTHOR]

This study identifies the factors that describe informal economies and summarizes them into indices measuring informality. We use data from 189 countries for the years 2015 and 2020. We carry out a factor analysis to identify the variables which structure informal economies and use the scores from a logistic regression to measure the degree of informality for each country. The results show that the degree of informality is related to the level of development. Thus, developing countries are generally those with the highest degree of informality while developed countries are generally characterized by a low level of informality. One of the important contributions of this paper is the method used to derive and then determine the depth of the informal economy in each country from the logistic regressions. Since the informal economy is not directly measurable, we first construct a binary variable named "prior informality." It is this variable that will be used in the logistic regression to measure the magnitude of the informal economy in each country. Thus, we construct a synthetical indicator that takes into account all dimensions of the informal economy with their particularity depending on whether we are in developed countries, in middle-income countries, or in underdeveloped countries. Mathematically, the principal component analysis gives us the best graphical representations of informal economies according to their characteristics. Likewise, the study enables us to classify countries into groups according to the variables that determine informality and draw dynamic charts representing the countries according to their level of informality. [ABSTRACT FROM AUTHOR]

This study considers the motivations of food truck owners and prospective owners in Bangkok during a difficult period both locally and globally. Plans for Bangkok’s future development were opaque. Inflation was rising rapidly, particularly food and energy costs critical to the industry. COVID-19 continued throughout the research. The aim was to stress-test motivation and commitment within the industry. The study asked participants what motivates them through qualitative and quantitative techniques, the former subject to thematic content analysis. Further, there was discussion with stakeholders and observation. Stakeholders particularly included training providers in the industry. Vendors requested more help so they could sustain themselves and prosper in the industry. Food trucks were of interest because of the relatively casual labour that found a place during COVID-19, although the number of trucks had declined before the pandemic. The study found that food truckers are still highly motivated and eager to help shape Bangkok’s food truck industry going forward and, thereby, the urban landscape and economy of the city. Demotivating factors suggested by the participants themselves focused on murky city planning, which became a major element in the study. Clearly, a transparent path forward must be negotiated between relevant stakeholders in determining the future development of the city. [ABSTRACT FROM AUTHOR]

Vallholder economy is an important driving force for urban economic and social development in the new era. Under the background of socialism with Chinese characteristics, through comparative research, empirical research, investigation and analysis, this paper concluded that the street vendor economy is informal, long-term and complex. For the governance of Chinese street vendors, we should learn from the theory, absorb foreign experience based on the national conditions and urban status, and find the breakthrough of governance from the root. Formulate “flexible” flexible policies, optimize space politics, divide and rule, break through the constraints of regularization, reconstruct and innovate the economic governance model of Chinese street vendors, and realize the “Sinicization of governance concept, local governance policy and contemporary governance model”. The research has enlightenment and reference significance for enriching the development of political economy theory, innovating the informal economic governance model and developing the informal economy in the new era. [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]

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]

It is nowadays widely understood that undeclared work cannot be efficiently combated without a holistic view on the mechanisms underlying its existence. However, the question remains whether we possess all the pieces of the holistic puzzle. To fill the gap, in this paper, we test if the features so far known to affect the behaviour of taxpayers are sufficient to detect noncompliance with outstanding precision. This is done by training seven supervised machine learning models on the compilation of data from the 2019 Special Eurobarometer on undeclared work and relevant figures from other sources. The conducted analysis not only does attest to the completeness of our knowledge concerning the drivers of undeclared work but also paves the way for wide usage of artificial intelligence in monitoring and confronting this detrimental practice. The study, however, exposes the necessity of having at disposal considerably larger datasets compared to those currently available if successful real-world applications of machine learning are to be achieved in this field. Alongside the apparent theoretical contribution, this paper is thus also expected to be of particular importance for policymakers, whose efforts to tackle tax evasion will have to be expedited in the period after the COVID-19 pandemic. [ABSTRACT FROM AUTHOR]

Even though the literature on unregistered economic activity is growing at an increasing rate, we commonly encounter simple ordinary least squares methods and panel regressions, largely ignoring the recent rapid developments in machine learning methods. This study provides a new approach to more accurately estimate the size of the non-observed economy using machine learning methods. Compared to two currency demand-based models used to estimate the size of the non-observed economy, we show that a Random Forest algorithm can more accurately estimate the demand for currency, which is known to provide a fair estimation of the unregistered economic activity. The proposed approach shows superior forecasting capabilities compared to the current state-of-the-art linear regression-based methods dedicated to estimating non-observed economic activity. [ABSTRACT FROM AUTHOR]

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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]

Italy is characterised by a significant dualistic economy, which also includes an extensive underground sector. The aim of this study is to analyse the relationship between the quality of legislation and irregular employment in Italy. Our contribution consists of two components: the theoretical modelling of the impact of regulatory quality on the informal economy and the empirical validation of the predictions of the theoretical model using data from the Italian region between 2004 and 2019. The results confirm the theoretical and empirical arguments in favour of the need for laws to curb the informal sector. The regions with the highest institutional standards tend to have a lower percentage of irregular workers that fosters and encourages the legality of the labor market. Some robustness tests back up the main conclusions which show how important following rules is for strengthening the internal economy and for lowering the number of illegal workers. [ABSTRACT FROM AUTHOR]

Faced with extraordinarily high unemployment, the long-term unemployed in South Africa increasingly have been securing livelihoods outside of standard waged work. Many are establishing unregistered, micro-enterprises that provide low-cost goods and services to low-income households. This paper presents the results of an exploratory study of unregistered (informal) second-hand tyre dealers in three South African cities to better assess their role in urban economies. Interviews with informal tyre dealers were conducted to understand how their businesses are positioned along the waste tyre value chain, their prospects for generating employment, and their potential to contribute to product reuse and repurposing. By extending the useful lives of tyres, informal dealerships can be analysed through a circular economy framework that acknowledges their varied environmental, economic, and social benefits. Concerns, however, are raised about the unregulated sale of second-hand tyres, some of which are unsafe and pose risks for road users. This in turn gives rise to difficult trade-offs between on the one hand the economic and environmental benefits of informal tyre sales and road safety on the other. [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]

Marketplaces have long provided a context for observing the negotiation of everyday life amid broader processes of social and economic transformation. A growing scholarship has debated the relationship between markets and capitalist modes of production in Africa. However, less attention has been paid to the changing moral dimensions of economic life within popular urban marketplaces. This article examines the moral economy of a central marketplace in Kampala, Uganda, through an analysis of a rare archive: the records of the market disciplinary committee. We show that market vendors have responded to the expansion of market economy in Kampala by invoking principles derived from the past, including the obligation to 'feed' others. Rather than an abstracted market economy, disputes in the market were interpreted in the context of an embedded market society in which value is placed on livelihood facilitation. These findings advance the burgeoning literature on capitalism in Africa by demonstrating the ways in which neoliberal norms and values are situated within a broader moral landscape that places limits on what can be exchanged with whom. [ABSTRACT FROM AUTHOR]

The article contributes to the history of labor statistics by identifying the social, political, and epistemic conditions that led to the recognition of informal work as a countable form of labor. The article traces the ILO's efforts since the 1970s to capture the initially elusive concept of the informal sector in an internationally recognized statistical definition and to introduce it into national accounts. It also elucidates how the understanding of informal work broke away from its original focus on developing countries and expanded in the 1990s, at a time when the spread of nonstandard employment had led to an increase in informal employment in developed countries as well. By analyzing the decades-long attempts to develop statistics on the informal sector and informal employment, the article illuminates labor as an object of contingent (and contested) statistical definition and also shows how actors representing informal workers mobilized statistical knowledge for political action. [ABSTRACT FROM AUTHOR]

Street vendors form a sector in the unorganized market of India. The advent of online payment, through platforms such as Paytm, PhonePe and Google Pay has helped them in understanding online finance, and assisted their business; however, there are milestones yet to be made in enhancing their financial literacy overall. As a part of this paper, we conducted a survey, not of the vendors themselves, but of certain members of the general public within our contact. It is known that the vendors lack a certain standard of living, and the survey was conducted in the direction of the public. We found that 58.3% of the respondents thought that the vendors contributed to the cultural vibrancy of the community, and that 75% of them thought that literacy was necessary. Despite this, 75% of them believed that the lack of education was the biggest barrier in financial literacy. It is our hope that this barrier ceases to exist for the vendors. [ABSTRACT FROM AUTHOR]

There is a vast body of literature dedicated to identifying the major drivers that explain human impacts on the environment. In this study, we utilize the STIRPAT framework to assess whether two controversial factors should be considered when examining how humans affect the environment. Specifically, we investigate whether the quality of the democratic regime and the size of the informal economy play significant roles in determining human impacts on the environment. To address this question, we employ the extreme bounds analysis (EBA) to characterize these drivers as either robust or fragile. Based on the findings of this paper, both variables are classified as fragile, suggesting that they may not fully explain human impacts on the environment. We have taken great care in interpreting the results. [ABSTRACT FROM AUTHOR]

Suppressed demand arises from inadequate energy access, resulting in unmet basic needs. Therefore, this study investigates the impact of the informal economy, rising temperatures, and electricity transmission losses on suppressed demand in Ghana from 2000 to 2020, using a quantile autoregressive distributed lag (QARDL) approach. The study forecasts suppressed demand using Shared Socioeconomic Pathway (SSP) scenarios, offering insights for energy system planning. The results indicate that all the variables significantly affect suppressed demand in the mid-quantiles. Notably, transmission losses and growth of informal economy variables significantly impact suppressed demand within the 50th to 75th quantiles but have minimal impact before the 50th and after the 75th quantiles in the long run. Additionally, rising temperatures substantially increase suppressed demand by increasing electricity demand for cooling. All future scenarios project this growth trend will continue through 2050, albeit at varying rates. In the business-as-usual (BAU) case, suppressed demand is expected to steadily increase from 1782 MW in 2020 to 8636 MW in 2050. This trajectory aligns well with historical growth trends, which saw suppressed demand increase from 659 GWh to 1782 GWh between 2000 and 2020. SSP scenarios suggest that suppressed demand could grow substantially through 2050, driven by high losses and informal sector growth. Despite sustainable development narratives like SSP1, suppressed demand remains high without major grid and governance improvements. Comparing the results with past studies shows that our findings align with previous research but provide more nuanced insights by incorporating the effects of the informal economy and using advanced forecasting techniques. Practical policy implications include investing in green infrastructure, upgrading grid infrastructure, and formalising the informal economy to alleviate suppressed demand. These actions are critical for sustainable energy access and meeting future electricity needs effectively.

Traditional food markets in sub-Saharan Africa (SSA) are pivotal urban spaces, especially for vulnerable populations. These markets are vibrant hubs for commerce, cultural exchange, and social interaction, yet they face challenges such as food safety issues, inadequate infrastructure, and regulation that is a complex mix of informal mechanisms in need of a balanced degree of formalization. Rapid urbanization in SSA and the vulnerabilities of informal settlements underline their enduring importance. The COVID-19 pandemic further highlighted their crucial role in promoting food access, supporting local economies, and preserving social connections during crises. However, a comprehensive understanding of their multifaceted impact on urban life remains limited. This study provides a systematic narrative literature review with the aims of mapping the existing literature and evaluating their complex impact on vulnerable communities. The review employed a systematic search strategy, encompassing research studies and gray literature. It highlights the geographic distribution of studies across SSA, with a concentration in East and Southern Africa. Nutrition is the most explored theme, followed by governance, with economics and social aspects relatively under examined. Traditional food markets are vital sources of affordable food for the urban poor and serve as pillars of economic mobility, providing livelihoods and employment opportunities, especially for women, and act as hubs for diverse groups to interact. Market governance is complex, often marked by policy misalignments due to insufficient collaboration among stakeholders. Policy initiatives to support traditional food markets in SSA should focus on formalization and context-aware regulations to enhance efficiency and vendor security, investment in market-related infrastructure, and nutrition-focused policies and economic support for vendors. Further research is needed to bridge thematic and regional gaps, and to inform evidence-based policy measures to support these vital urban institutions.

The crisis during the pandemic restrained the livelihood of women and disrupted their economic opportunities. Specifically, during the height of the lockdown, when people were restricted from going out, the livelihood of women who sold and peddled seafood products was greatly affected. This paper unfolds women’s socio-demographic profile and knowledge regarding the laws for protecting women’s rights in the lexis of the Republic Act No. 9710, also known as the Magna Carta of Women, and their economic condition in the informal economy during the pandemic. This descriptive mixed method quantitatively surveyed 70 women and another 10 women for the Key Informant Interviews (KIIs). The findings have shown that women in the informal economy were predominantly in the middle and late adulthood stage, married, the majority had a low level of education (i.e., elementary & high school levels) and were the breadwinners in the family. Also, the average size of each family consisted of 7 members with an average family monthly income of 7,407 pesos. The themes unearthed that informants perceived the Magna Carta of Women as unfamiliar and vague concepts, inconsistent implementation, and responsive leadership. On the other note, informants highlighted that the imagery of women in society gained parity in gender roles. It was revealed that women struggled with delayed assistance, parental obligations, prejudice, and partial treatment.

In this paper, we use panel data containing all EU27 countries from the 2010 to 2022 period to investigate the impact exhibited by the shadow economy on the level of NPLs. Based on a Panel GMM approach we reveal a negative connection, indicating that Countries with larger informal sectors often exhibit lower reported NPLs, possibly due to less stringent oversight. Additionally, economic growth correlates negatively with NPLs, while rising unemployment is associated with increased NPL levels. However, factors like inflation, political stability, and government debt did not show significant correlations with NPLs in our analysis. The topic holds significant relevance for both macro-stability policymakers and commercial banks aiming to understand how changes in fiscal and budgetary conditions impact the quality of credit portfolios.

ABSTRACTThis study explores the diverse range of activities undertaken by informal workers and the ways in which these activities can differ in terms of their degree of informality. The methodology is qualitative, based on a case study of mototaxi drivers in Cartagena, Colombia, in order to achieve a more complete description and a holistic analysis of the phenomenon. The paper offers a novel multilevel perspective of informality that encompasses not only legal status but also social and economic aspects, and proposes an integrated approach to understanding informality that accounts for the range of activities undertaken by informal actors.

Context and background The incorporation of artificial intelligence (AI) into businesses has become increasingly widespread in recent years, particularly in developed countries, fundamentally reshaping the landscape of entrepreneurship and innovation. AI presents numerous opportunities for small businesses, including those involved in cross-border trade. It has the potential to transform various aspects of business operations, such as customer interactions, marketing research, understanding consumer behavior, optimizing routes, and forecasting sales and marketing trends. Additionally, AI can contribute to the formalization of business processes, and assist these businesses in adapting more effectively to the ever-changing dynamics of the market. However, the successful implementation of AI necessitates a meticulous assessment of AI applications to ensure alignment with the objectives and resources of each individual small business. Goal and Objectives: The primary focus of this paper is to explore the potential of Artificial Intelligence in enhancing Africa's cross-border trade. The paper will address the following research questions: What are the effective applications of artificial intelligence in cross-border informal trade in Africa, and what are the limitations? What does the future hold for African countries in terms of utilizing artificial intelligence for cross-border trade? How can African informal cross-border traders and their stakeholders benefit from incorporating artificial intelligence in their activities? Methodology: The research is purely empirical research based on observation and measurement of phenomena, as directly experienced by the researcher. Results: AI can be effectively applied by Informal Cross-Border Traders (ICBT) to enhance their businesses and enhance competitiveness. There are several AI applications accessible to ICBT within their operational context. Although the adoption and utilization of AI in Africa are still in their infancy, there is considerable promise for the future. Africans must address the challenges hindering the adoption and utilization of AI, as technology is advancing rapidly, and opportunities await those who embrace it. [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]

This study investigates how a carbon tax could reduce fiscal and economic distortions as well as cut carbon emissions in developing-country economies. A computable general equilibrium model is developed to analyze the economic impacts of a hypothetical carbon tax in Côte d'Ivoire, a country in Sub-Saharan Africa with large losses of tax revenues due to informality and leakage. The model represents informal as well as formal production activities. The analysis shows that the economic impacts of a carbon tax and the levels of CO2 reduction vary significantly among alternatives for recycling the carbon tax revenue. A carbon tax with revenues recycled to reduce the existing value-added tax would increase GDP and economic welfare. If the revenue is used to cut the existing tax on labour, the carbon tax would not only increase GDP but also induce the migration of workers from informal to formal activities. The analysis also shows that if energy producers are not excluded from carbon tax revenue recycling, the carbon emission reduction is significantly lower due to a rebound effect. A carbon tax with lump-sum transfers of revenues to households would be progressive as the revenue is equally transferred to all households, but it reduces economic output and does not help reduce informal economic activities. A carbon tax can be beneficial to developing countries by generating fiscal co-benefits through revisions of other taxes. The size of the fiscal co-benefits depends on the carbon tax design. A carbon tax with revenue recycled to cut labour taxes incentivizes informal economic activities to move to the formal sector and to increase economic welfare. Using carbon tax revenues to reduce the value-added tax can reduce tax evasion and increase economic welfare. Unless energy producers are prevented from receiving the benefits of carbon tax revenue recycling, emission reduction is decreased due to a rebound effect. [ABSTRACT FROM AUTHOR]

Motivation: Formal social protection systems, such as health insurance and representation, are often biased in favour of formal workers, thereby excluding most of the world's working population who make a living in the informal economy. Purpose: The article extends existing critiques of formality bias by investigating the reality of work for people in the informal economy in Kenya and Tanzania and analysing related social protection challenges. Specifically, we look at: (1) the governance of work; (2) the organization of work relations; and (3) collective agency. In terms of social protection, we focus on formal and informal forms of social insurance and representation. Methods and approach: We draw on interview and survey data from people working in micro trading, transport, and construction in Nairobi and Kisumu in Kenya, and Dar es Salaam and Dodoma in Tanzania. A total of 1,462 workers were surveyed and 24 focus group discussions were held with such workers. Interviews were conducted with 120 key informants: leaders and members of informal workers' associations in the three sectors, as well as representatives of authorities, trade unions, and business associations. Data were collected from June 2018 to December 2019. Findings: Formal social insurance and representation do not fit the real experience of most people working in the informal economy. They have been modelled on and designed to support workers in formal standard employment relations. At the same time, informal workers' associations play important roles in meeting—albeit inadequately—the social insurance and representational needs of their members. Policy implications: Meaningful engagement with the reality of work and collective agency in the informal economy is necessary to inform more appropriate policies and measures to provide informal workers with appropriate social protection measures, particularly social insurance and representation. Their reality should not have to conform to an inadequate model; rather, the model should fit their reality. [ABSTRACT FROM AUTHOR]