Developing Asia and the informal sector

Richard Grabowski and Sharmistha Self

Economics Bulletin, 2023, vol. 43, issue 1, 191 - 202

Abstract: The informal sector is generally viewed as having a negative impact on economic development and thus a negative impact on human development. It is argued in this paper that the impact of the informal sector on human development is dependent on the agricultural environment that exists in the particular country. Specifically, if agricultural productivity is rapidly growing the informal sector is less likely to have a negative impact and more likely to have a positive impact on human development. This hypothesis was tested utilizing data from twelve Asian countries.

Keywords: agriculture; informal sector; human development (search for similar items in EconPapers)
JEL-codes: O1 Q1 (search for similar items in EconPapers)
Date: 2023-03-30
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