Globalisation versus Informality: Evidence from developing countries

Thi Hong Hanh Pham

No 74, FIW Working Paper series from FIW

Abstract: A number of theoretical studies have tended to trace the nature of globalization process’ impacts (mostly characterised by trade opening) on informality, while relevant empirical literature has been not well developed. The paper aims to fill this knowledge gap by shedding further light on the linkages running from globalisation to informality in developing countries. Moreover, in this study, globalisation is characterised not only by trade integration but also by other globalisation aspects, such as social globalisation, financial globalisation and so forth. To achieve the main objective, we employ the Bayesian statistical techniques, which allow one to determine, from a large set of different globalization indicators, a subset of indicators most likely to influence the size of informality. Our finding reveals that the indicators with consistently high inclusion probabilities are trade integration, trade reforms, de jure financial openness and social globalisation. On the other hand, many covariates found significant in previous empirical studies are not robust to including in informality modelling.

Keywords: Globalisation; Informality; Bayesian Model Averaging; Developing countries (search for similar items in EconPapers)
JEL-codes: F16 F41 J21 O17 (search for similar items in EconPapers)
Pages: 34
Date: 2011-10
New Economics Papers: this item is included in nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.fiw.ac.at/fileadmin/Documents/Publikati ... Paper/N_074-Pham.pdf full text (application/pdf)
none

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2011:i:074

Ordering information: This working paper can be ordered from
FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna

Access Statistics for this paper

More papers in FIW Working Paper series from FIW
Bibliographic data for series maintained by ().