An Estimation of the Informal Economy in Morocco

Othmane Bourhaba and Hamimida Mama

International Journal of Economics and Finance, 2016, vol. 8, issue 9, 140-147

Abstract: The paper attempts to both measure the size of the informal economy in Morocco and knows its tendency through the MIMIC approach. We calculated the size of the informal economy during the period 1999-2015. Our estimates show that this hidden part of economy constitutes 42.9% of the official GDP in 2015, and also show that there is a growth and a positive tendency of the informal economy in Morocco. The rise of corruption, the growth of the rate of urbanization and the tax burden play a determinant role in the magnification of the informal sector in Morocco.

Keywords: informal economy; MIMIC approach; Morocco; shadow economy (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:8:y:2016:i:9:p:140-147

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