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  1. Corruption, economic growth and the informal sector
    empirical evidence from developing countries
    Author: Ngouhouo, Ibrahim; Njoya, Loudi; Asongu, Simplice
    Published: [2022]
    Publisher:  African Governance and Development Institute, [Yaoundé]

    The main objective of this paper is to contribute to in-depth literature on the relationship between growth and the informal sector in the presence of corruption. The impact of the interaction between growth and corruption on economic performance... more

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    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 524
    Inter-library loan:
    No inter-library loan

     

    The main objective of this paper is to contribute to in-depth literature on the relationship between growth and the informal sector in the presence of corruption. The impact of the interaction between growth and corruption on economic performance (increase or decrease of the informal sector) will be discussed. To the best of our knowledge, our paper is unique in the empirical literature because it studies the effect of the interaction between growth and corruption in the informal sector using a sample of developing countries. Our results based on the FE, system GMM, MG, AMG, and IV-2SLS for 112 countries between the 1991- 2015 periods, show that growth reduces informality in the direct effect regression. Moreover, economic growth interacts with corruption and produces negative net effects up to a corruption threshold of 4.79745 when this effect is nullified. This negative net effect was found to be robust across different regional groupings and income groups except in the Middle East and North Africa (positive net effect) and high income and upper-middleincome countries (only direct effects) producing different thresholds per sample. The study recommends that policymakers should intensify their fight against corruption in their quest to reduce the size of the informal economy.

     
    Export to reference management software   RIS file
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/262068
    Series: AGDI working paper ; WP/22, 014
    Subjects: Informal sector; Growth; Corruption; Developing countries
    Scope: 1 Online-Ressource (circa 23 Seiten), Illustrationen
  2. The role of economic prosperity on informality in Africa
    evidence of corruption thresholds from PSTR
    Author: Njoya, Loudi; Ngouhouo, Ibrahim; Asongu, Simplice; Schneider, Friedrich
    Published: [2022]
    Publisher:  African Governance and Development Institute, [Yaoundé]

    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... more

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 524
    Inter-library loan:
    No inter-library loan

     

    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.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/262070
    Series: AGDI working paper ; WP/22, 012
    Subjects: Informal sector; Growth; Corruption; African countries
    Scope: 1 Online-Ressource (circa 25 Seiten), Illustrationen