INFORMAL SECTOR AND INSTITUTIONS
INFORMAL SECTOR AND INSTITUTIONS
Author(s): Muhammed Yusuf ÖzerSubject(s): Economy, National Economy, Political economy, Corruption - Transparency - Anti-Corruption
Published by: ASERS Publishing
Keywords: informal sector; institutional quality; cross-country analysis; panel data;
Summary/Abstract: In this paper, I investigate the relationship between informal sector size and various institutional quality variables: government stability, external conflict, internal conflict, corruption control, military influence over politics, religious tensions, ethnic tensions, law-and-order, democratic quality, and bureaucratic accountability. To this end, I use annual cross-country panel data covering 130 countries from 1990 to 2018. Having conducted a correlation analysis, the size of informal economy and institutional quality indicators are inversely linked. The most crucial institutional quality determinants are law-and-order (-0.53), bureaucratic quality (-0.51), military in politics (-0.45), corruption control (-0.42), and internal conflict (-0.35).
Journal: Theoretical and Practical Research in Economic Fields (TPREF)
- Issue Year: XIII/2022
- Issue No: 26
- Page Range: 180-187
- Page Count: 8
- Language: English
- Content File-PDF