Economic Freedom and the Informal Economy
Osama Sweidan ()
Global Economy Journal (GEJ), 2017, vol. 17, issue 4, 1-10
This paper empirically investigates the effect of economic freedom on the informal economies in a sample of 112 countries over the period 2000–2007. We employ two methodologies: fixed effect and the GMM models. We find a statistically significant negative relationship between economic freedom and the informal economy. This conclusion indicates that the nature of the economic system plays an important role in seizing the informal economy. Further, our results demonstrate that the formal and informal economies are substitutes. The policy implication is that economies with high share of informal economy should work with fewer economic restrictions.
Keywords: informal economy; economic freedom; panel analysis; fixed effect model; GMM model (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers
Journal Article: Economic Freedom and the Informal Economy (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wsi:gejxxx:v:17:y:2017:i:04:n:gej-2017-0002
Ordering information: This journal article can be ordered from
Access Statistics for this article
Global Economy Journal (GEJ) is currently edited by Joseph Pelzman
More articles in Global Economy Journal (GEJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().