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http://hdl.handle.net/10419/52106
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| Title: | | Informal sector and corruption: An empirical investigation for India  |
| Authors: | | Dutta, Nabamita Kar, Saibal Roy, Sanjukta |
| Issue Date: | | 2011 |
| Series/Report no.: | | Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5579 |
| Abstract: | | India is a country characterized by a huge informal sector. At the same time, it is a country where the extent of corruption in every sector is remarkably high. Stifling bureaucratic interference and corruption at every stage of economic activities is one of the main reasons behind high participation in informal and unregulated sectors. For economies characterized by high inequality and poverty, a useful tool for the government to pacify social unrest, is to choose a lower level of governance allowing substantial corruption in the system. Based on a study of 20 Indian states, we empirically show that higher corruption increases level of employment in the informal sector. Further, our analysis also shows that for higher levels of lagged state domestic product, the positive impact of corruption on the size of the informal sector is nullified. |
| Subjects: | | informal sector corruption state domestic product governance India |
| JEL: | | C12 C31 D23 J21 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-201104134013 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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