Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/262070 
Year of Publication: 
2022
Series/Report no.: 
AGDI Working Paper No. WP/22/012
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This paper is interested in explaining the causes of the simultaneous evolution between economic growth and informality. Using a large annual panel of African countries with a time series of 25 years, ours results show that when the corruption rate is above (below) a threshold of 1.3577, economic growth reduces (increases) informal economic sector. The corruption proxy is measured as a decreasing function of corruption such that higher levels of the corruption proxy translate lower levels of corruption. It is therefore desirable for policymakers to improve the transparency of interactions between firms, public and private agents to fight corruption, in view of decreasing the informal economic sector through economic growth.
Subjects: 
Informal sector
Growth
Corruption
African countries
JEL: 
D73
F47
J46
O1
O17
O47
Document Type: 
Working Paper

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