Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorKrakowski, Michaelen_US
dc.description.abstractThis paper analyses the determinants of the size of the informal economy using crosscountryregressions. Two sets of global data using indirect estimation techniques andthe perception of business leaders for 109 countries as well as a regional set for LatinAmerica based on direct data are used to estimate the size of the informal economies.Indirect estimation techniques arrive at higher estimates of the size of the informaleconomy than the perceptions of business leaders because they include not only the(fundamentally legal) activities of the informal sector, but also those activities which areillegal per se. Both kinds of estimate show strong regional differences in the size of theinformal economies. Regressions on a set of indicators covering the intensity ofregulations, taxes and the cost of establishing a business reveal that the intensity oflabour regulations seems to be the most important factor in explaining the size of theinformal economy in cross-country regressions using the rational behaviour approach.Socio-cultural indicators are only important in explaining the size of the informaleconomies in Latin America. Government efficiency is an important factor in explainingthe size of the informal economy in world regressions. Regional regressions reveal thatdifferent aspects of governance dominate the relationship between governmentefficiency and the size of the informal economy in the different regions. Governmentsthat seek to limit or decrease the size of the informal economy must therefore start froma country-specific analysis of the reasons why economic agents choose to conduct theirbusiness in the informal sector.en_US
dc.publisher|aHamburg Institute of International Economics (HWWA) |cHamburgen_US
dc.relation.ispartofseries|aHWWA Discussion Paper |x313en_US
dc.subject.keywordinformal sectoren_US
dc.subject.keywordtax evasionen_US
dc.subject.keywordbusiness regulationen_US
dc.subject.stwInformeller Sektoren_US
dc.subject.stwStaatliche Einflussnahmeen_US
dc.titleDeterminants of the Informal Economy : The Importance of Regional Factorsen_US
dc.typeWorking Paperen_US

Files in This Item:
220.66 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.