Public policies promoting the informal economy: effects on incomes, employment and growth in Burkina Faso

Abel Traoré () and Idrissa Mohamed Ouedraogo

MPRA Paper from University Library of Munich, Germany

Abstract: Since the 1990s, Burkina Faso has intensified the implementation of supporting policies to enhance the access to capital and liquidity in the informal economy. This paper analyzes the effects of these policies on incomes, employment and economic growth by taking into account the interactions between the informal sector, the formal sector and the agricultural sector. For that purpose, policy shocks are simulated through the Partnership for Economic Policy Network’s static computable general equilibrium model which is adapted to the structure of a 2008-based social accounting matrix developed by the International Food Policy Research Institute. Our results highlight mixed effects including a paradoxical contraction of the informal sector, the formal sector and economic growth as well as an improvement of the informal households and the farmers’ incomes.

Keywords: Informal economy; Public Policies; CGE model (search for similar items in EconPapers)
JEL-codes: E16 E26 H81 O17 (search for similar items in EconPapers)
Date: 2015-12-01
New Economics Papers: this item is included in nep-afr and nep-iue
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74760

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