scholarly journals Evaluation of Investment and Return in Informal Sector: A Case of Chitwan District

2013 ◽  
Vol 28 (1-2) ◽  
pp. 235-252
Author(s):  
Ramchandra Dhakal
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Political Stability ◽  
Formal Sector ◽  
The People ◽  
Determining Factors ◽  
Informal Economies ◽  
Effective Policy ◽  
Males And Females ◽  
The Government

Developing counties, like Nepal is still in tense to maintain the level of political stability, economic growth, development, and employment which are the main issues in one side of the economy and on the other, the majority of the people find shelter in the informal sector in the absence of sluggish growing formal sector. Most of the people are engaged in informal economies that have created varying effects on them in terms of employment and income generations. The latter seems to be determined mainly by the household property, level of literacy, the number of persons employed in any unit and investment. However, there is no apparent differentiation in the income earnings between males and females, the latter seems to be more efficient and articulate in many ways. Income earnings have been higher in the urban location than that of the rural sector. Income level and the determining factors seem to vary among different location and sexes. This study tries to compare the nature and characteristics of informal sector both at national as well as international levels. The government must play effective policy as well as to uplift informal economy for the economic development as a whole. To identify the informal sector properly in Nepal, a national wide survey that covers overall aspects should be considered before taking any step.

scholarly journals Is Informal Sector Employment Marginal to Formal Sector Growth?

2012 ◽  
Vol 51 (4II) ◽  
pp. 543-564 ◽  
Author(s):  
Nadia Tahir ◽  
Pervez Tahir
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Labour Force ◽  
Value Added ◽  
The State ◽  
Formal Sector ◽  
Informal Workers ◽  
Role Of The State ◽  
The Government

Pakistan has adopted a neoliberal regime to open the economy to global competition and reduce the role of the state. This directional change brought increased flow of overseas remittances, speculative investment, and consumerism. Consequently, the economy in mid-2000s grew but commodity-producing sector contracted. Public sector spending has been falling, especially on social sectors. There are inadequate provisions for social security and employment based income guarantees. However, this growth and stability was short lived and there is now a fragile state and slowing economy. In the absence of an effective regulatory role of the state, and due to the failure in developing a long-term strategy to harness the labour force potential, there is a huge informal sector existing side by side with the formal economy. Almost 22 million of the employed labour force is earning its livelihood in streets and the government has no record of it. The informal workers can be categorised as self-employed workers and wage workers, doing diversified jobs from petty traders to small producers and from rickshaw driver to shoe shiners. It is difficult to measure the value added contribution of the informal sector in Pakistan. Indirect estimation approaches on the basis of employment and hours worked have been used to estimate the contribution of informal economy. For instance, Idris (2008) estimates the share at 36.8 percent of GNP, which is significant. Arby, Malik and Hanif (2010) measured the size of informal economy in Pakistan through a monetary approach. They find that the size has declined considerably.

scholarly journals Community Unionism in Africa: The Case of Mozambique

2011 ◽  
Vol 66 (1) ◽  
pp. 54-73 ◽  
Author(s):  
Pauline Dibben ◽  
Sara Nadin
Keyword(s):  
Informal Sector ◽  
Trade Union ◽  
Informal Economy ◽  
Community Organization ◽  
Formal Sector ◽  
Close Relationship ◽  
Formal Employment ◽  
The Government ◽  
Community Unionism ◽  
The Relationship

Analysis of findings suggests that community unionism is vibrant within Mozambique. Trade union engagement with the main community organization representing the informal economy appears to be a key element of its revitalization strategy; both parties are benefiting from the relationship, and it appears to be sustainable. However, certain questions arise regarding its longer-term viability. Firstly, ASSOTSI represents those working illegally, while the OTM focuses on workers in formal employment. Secondly, OTM has a close relationship with the government due to its socialist past, yet ASSOTSI has a more tentative relationship with the government. Thirdly, ASSOTSI represents only African workers. Furthermore, senior figures in the OTM now seem to be re-considering the value of sustaining an affiliate model that includes all of the informal economy (including both owners and workers), and instead are contemplating setting up a union to represent informal sector workers.This article draws on in-depth research to investigate how community unionism has been employed in Mozambique, an emerging economy in Africa. In doing so, it asks whether engagement with community organizations is characterized by a strategic or piecemeal approach, the degree to which there are mutual benefits for the trade union and the community organization, and whether the relationship is sustainable in the longer term.Against the background of liberalization, privatization and financial crisis, unions face a declining number of core members. In emerging economies such as Mozambique, the formal sector now constitutes around eight percent of the working population, while around seventy-five per cent of the workforce is in the informal sector, with the remainder being unemployed. In many countries, unions have sought to engage these workers through “community unionism.”

scholarly journals Informality and Economic Growth in Nigeria: 1980-2014

2017 ◽  
Vol 3 (3) ◽  
pp. 405 ◽  
Author(s):  
Mohammed Yelwa ◽  
A. J. Adam
Keyword(s):  
Economic Growth ◽  
Informal Sector ◽  
Informal Economy ◽  
Data Series ◽  
Formal Sector ◽  
Female Population ◽  
Demand Deposit ◽  
The Impact ◽  
Adf Test ◽  
The Relationship

<p><em>The paper examines the impact of informal sector activities on economic growth in Nigeria between 1980-2014. The contributions of informal sector activities to the growth of Nigerian economy cannot be over emphasized. It is the source of livelihood to the majority of poor, unskilled, socially marginalized and female population and is the vital means of survival for the people in the country lacking proper safety nets and unemployment insurance especially those lacking skills from formal sector jobs. The relationship between informality and economic growth is not clear because the sector is not regulated by the law also there is no concrete evidence that this sector enhances growth because the sector’s contributions to growth is not measured. The use of endogenous growth model becomes relevant in this study. The theory emphasizes the role of production on the long-run via a higher rate of technological innovation. The variables that were tested are official economy nominal GDP, informal economy nominal GDP, currency in circulation, demand deposit, ratio of currency in circulation to demand deposit, narrow money, informal economy as percentage of official economy. ADF test was conducted to establish that the data series of all variables are stationary t levels. Having established the stationarity test we also, conducted causality test of the response of official economy nominal GDP to informal economy nominal GDP. In conclusion, the impact of informal sector economy on economic growth in Nigeria is quiet commendable. Even though, the relationship between informality and economic growth is not straight. The paper recommended thus, the need for the government to integrate the activities of the informal economy into formal sector and size of the sector is measured and regulated because their roles are commendable. As it will improve tax collection and enhance fiscal policy.</em></p>

Neo-Dualism: Accumulation, Distress, and Proliferation of a Fissured Informality

2021 ◽  
pp. 048661342110121
Author(s):  
Kasturi Sadhu ◽  
Saumya Chakrabarti
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Growth Process ◽  
Jel Classification ◽  
Formal Sector ◽  
Firm Level ◽  
Macro Model ◽  
Long Run ◽  
Level Data ◽  
Firm Level Data

A dominant strand of orthodoxy argues that the problem of the informal sector could be mitigated through the capitalistic growth process. But our observations on India are different—with an expansion of the capitalistic formal sector, as the economy grows, there is a proliferation of fissured informality. Using a structuralist macro-model, we provide certain explanations for this phenomenon, which are also tested empirically using Indian subnational-state and firm-level data. Thus, we explore both the short- and long-run effects of the expansion of the formal sector on the heterogeneous informal economy. While a section of the population is pulled into the advanced informal activities, a vast segment is pushed to petty production. Accordingly, the orthodox transition narrative is questioned and alternative policy and political possibilities are introduced. JEL Classification: O11, O13, O17, P48

Expanding East African tax base will face resistance

2016 ◽  
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Essential Role ◽  
Budget Deficits ◽  
Formal Sector ◽  
East African ◽  
Efficient Manner ◽  
Tax Base ◽  
Member States ◽  
Content Type

Significance Member states' national budgets include plans to increase taxation of the informal economy. Governments have several reasons for broadening tax bases: budget deficits, increasing debts, donor dependency, declining revenue from the formal sector and a desire to improve services and infrastructure. Impacts Limited state resources will hinder attempts to formalise economies through enforcement alone. Incentives will play an essential role in any attempt to expand the tax base. Unless implemented in an efficient manner, taxation of the informal economy could drain government funds and hurt informal businesses. Successful taxation of the informal sector will fail unless businesses see returns in services or infrastructure.

scholarly journals Optimal Tax Design and Enforcement with an Informal Sector

2009 ◽  
Vol 1 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Robin Boadway ◽  
Motohiro Sato
Keyword(s):  
Informal Sector ◽  
Production Efficiency ◽  
Intermediate Goods ◽  
Formal Sector ◽  
Optimal Tax ◽  
Commodity Tax ◽  
The Government ◽  
Optimal Commodity ◽  
Tax Design

An optimal commodity tax approach is taken to compare trade taxes and VATs when some commodities are produced informally. Trade taxes apply to all imports and exports, including intermediate goods, while the VAT applies only to sales by the formal sector and imports. The VAT achieves production efficiency within the formal sector, but, unlike trade taxes, cannot indirectly tax profits. Making the size of the informal sector endogenous in each regime is potentially decisive. The ability of the government to change the size of the informal sector through costly enforcement may also tip the balance in favor of the VAT. (JEL E26, H21, H25)

scholarly journals Income Concentration, Market Size and Informal Sector in Africa

2019 ◽  
Vol 5 (1) ◽  
pp. 7-23
Author(s):  
Tchakounté Njoda Mathurin ◽  
Hamit Halou Chalout
Keyword(s):  
Economic Policy ◽  
Simple Model ◽  
Income Distribution ◽  
Informal Sector ◽  
Informal Economy ◽  
Market Size ◽  
Fiscal Policies ◽  
The Poor ◽  
The Government ◽  
Income Concentration

In this study, we analyze the link between income concentration and the size of the informal sector. We construct a simple model where income concentration determines demand and firms decide whether to operate in the formal or the informal economy is outlined. The government collects taxes and returns them to society either as a productive public good for its use by formal firms or as transfers to the poor. It is further postulated that income distribution affects the response of the informal sector to different fiscal policies, either demand or supply-orientated. In this case, redistribution towards the middle class decreases the size of the informal sector and increases the capacity of fiscal instruments to reduce informality. Data concerns 38 Africans’ countries in which the characteristic of income distribution is similar across countries. Using this comparable macro-level panel data between 1991 and 2013, we find strong evidence that high-income concentration leads to a large informal sector. Furthermore, an economic policy, including the effective application of the tax and regulatory procedures, should help to keep down the size of the informal economy.

scholarly journals Attitude of Public towards Higher Education: Conceptual Analysis

2016 ◽  
Vol 2 (12) ◽  
pp. 19 ◽  
Author(s):  
Anuja Roy ◽  
Jacqueline Kareem
Keyword(s):  
Higher Education ◽  
Human Resource ◽  
Well Being ◽  
Poverty Line ◽  
Resource Potential ◽  
The People ◽  
Education In India ◽  
Indian Higher Education ◽  
Males And Females ◽  
The Government

Indian higher education has never received much prominence when compared to the primary level. Academicians of our country have already pointed out that for economic and social well-being of our country majorly depends on the quality and widespread of higher education in our country. The main obstruction is the misconceptions by the general public of our country which is accompanied by the economic issues. The vision of Ministry of Human Resource and Development heads the department of Higher Education whose aim is to realize India’s human resource potential to its fullest in the education sector, with equity and excellence. Higher education is a costly affair when we take into consideration the fact that almost 20% of the population still lie under the poverty line. There is still a gap in the level of enrolment between males and females. The government is trying hard to overcome this disparity. Skills have often been ignored in our country’s scenario. Thus, higher education should also promote and encourage technical education. An All India Survey on Higher Education was initiated only in 2011, only because none of the sources had a complete picture of the data on higher education. The large amount of population is also a problem as it becomes difficult to cater to the needs of each individual or group. The resources are scarce when compared to the people demanding for it. We should try to identify the problems, and then we should work towards solving those problems. Public of our country should be willing to send their children for higher education; they should be having a positive attitude towards higher education. This paper discusses several steps that can be untaken to bridge the gaps in the system of higher education in India.

scholarly journals The Shadow Pandemic: Examining the Impact of COVID-19 on Zimbabwean Informal Sector in Chiredzi District

2021 ◽  
Vol 4 (1) ◽  
pp. 1-10
Author(s):  
Bismark Mutizwa
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Preventive Measures ◽  
Developing Economies ◽  
Illustrative Case ◽  
Government Grants ◽  
Remedial Actions ◽  
The Government ◽  
The Impact ◽  
Informal Traders

COVID-19 has disrupted the business sector globally, ushering developed and developing economies into an unprecedented recession beyond anything experienced in nearly a century. Governments across the globe have adopted a myriad of preventive measures. These remedial actions vary from one country to the other. Nonetheless, in Zimbabwe the government gave a blind eye on the informal sector as evidenced by the adopted preventive measures which neglected the plight of informal traders. To this end, this research interrogates the shadow pandemic in the Zimbabwean informal sector using Chiredzi District as an illustrative case study. Documentary review and key informed interviews were at the core of research methodology. The study found out that informal economy businesses are excluded from government grants, closure of businesses, failure to pay rentals, disruption of the supply chain, psychological impact and family dysfunctional are the quandaries causing a shadow pandemic. Inclusion of informal economy businesses in policies and government grants, government should negotiate with landlords, informal traders should be allowed to operate and inclusive social nets are the possible remedial actions that the government can adopted.

scholarly journals Socioeconomic and structural profiles of the informal sector in the COVID-19 pandemics

Nova Scientia ◽  
2021 ◽  
Vol 13 ◽  
Author(s):  
Saúl Alfonso Esparza-Rodríguez ◽  
Jaime A. Martínez-Arroyo ◽  
Armando Sánchez-Vargas
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Categorical Data ◽  
Economic History ◽  
Social Economic ◽  
Probit Model ◽  
The People ◽  
Structure Factors ◽  
History Of ◽  
Main Effects

The crisis considered as the "Great Confinement" caused by the outbreak of the COVID-19 disease has had a multidimensional impact on humanity, on a health, social, economic, and political level. One of the main effects has been reflected in an economic crisis unparalleled in human history. In the economic history of the human being, each crisis of a wide magnitude has demonstrated a relationship between sociodemographic and economic factors and the growth of the informal economy, such as the level of earnings, scholarship, search of an extra job sex and levels of inequality and poverty. Method: Database was obtained from harmonized surveys made available by INEGI and SHCP, from where both quantitative and categorical data were identified that correspond to the structuralist and institutionalist dimension of informality. Based on that, we applied a Logit model to determine the probability of a person to belong to the informal sector of the economy, and a Probit model to identify reiterated variables of the model as well. Results: Statistically representative variables to determine the probability to belong to the informal sector, with a global percentage of 72.5 %, are the years of school, age, economic inequality, percentage of poverty in each state, the degree of spending in fiscal obligations, the level of fiscal compensations due to belonging to RIF, the type of occupation, sex and the level of minimal wages earned. Discussion or Conclusion: Considering the findings of the research, it is possible to infer that the people with higher risk of falling in the informality and continuing in it, show a characteristic profile that can be considered as a valid base to design effective public policies to reduce informality. The present research contributes trough the identification of a model that describes the profile of an individual with a higher probability of integrate to the informal sector of the economy, considering both sociodemographic and market structure factors, considering the effect of the pandemics in the current economic conditions.

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