State History and the Size of the Informal Economy: Does Control of Corruption Matter?

Seabrook Arthur Mveng () and Atangana Ondoa Henri ()
Additional contact information
Seabrook Arthur Mveng: University of Yaounde II
Atangana Ondoa Henri: University of Yaounde II

Journal of the Knowledge Economy, 2024, vol. 15, issue 4, No 62, 17213-17231

Abstract: Abstract This study investigates how state history influences the size of the informal sector through control of corruption and its sub-components. The study employs ordinary and two-stage least square estimation techniques with data from 110 countries for the period 1993–2018 to examine this relationship. Our results show that the longer state history reduces the size of the informal economy through strict control of corruption. Moreover, among the four sub-measures of control of corruption studied, the strongest indirect effects occur via the control of executive (68%) and public sector (64%) corruption. Therefore, the fight against the expansion of the informal economy may face obstacles in countries with a short history of statehood, where the fight against corruption has not had sufficient time to develop. Policymakers should keep this in mind when designing their economic policies. Fighting corruption among leaders and officials is a crucial part of implementing policies to combat the growing size of the informal sector.

Keywords: State history; Control of corruption; Informal sector size (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-024-01806-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01806-2

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-024-01806-2

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().