Does social media foster informality in developing countries?

Les médias sociaux favorisent-ils l’informalité dans les pays en développement ?

Jacques Yana Mbena, Georges Ngnouwal Eloundou, Blaise Ondoua Beyene, Cerapis Mbognou Nchinda and Jacky Flore Ngo Nsoa Simb
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Jacques Yana Mbena: Université de Paris 13 - Paris Nord Villetaneuse
Georges Ngnouwal Eloundou: Université de Paris 13 - Paris Nord Villetaneuse
Blaise Ondoua Beyene: Université de Dschang DSEM, ACEDA
Cerapis Mbognou Nchinda: Université de Dschang LAREFA, DSEM
Jacky Flore Ngo Nsoa Simb: Université de Dschang DSEM, ACEDA

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Abstract: Motivated by the growing informal sector "ISec" in emerging economies, the authors of this paper assesses social media's "SM" effects on developing countries' ISec. Based on a sample of 81 developing countries according to the World Bank classification over the period 2009-2018, the authors specify and estimate a statistically dynamic panel data model using Robust Ordinary Least Squares regression (OLS) and Generalised Moment Method in system (sGMM). It was found that the access to SM has a positive and significant effect on the ISec. The robustness analysis is confirmed by modifying the measure of the ISec and by considering the effects of SM access on informal activities. The results confirm that the ISec increases when the percentage of the population that connects to social networks increases. We recommend that policymakers monitor economic activities on SM and infer policies aiming at monitoring business practices of informal structures in developing countries.

Keywords: Developing countries; OLS; Informal sector; Social media; SGMM; MCO; Pays en développement; Secteur informel; Médias sociaux (search for similar items in EconPapers)
Date: 2025-05-14
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Published in European Review of Service Economics and Management, 2025, 2025-1 (19), pp.71-102. ⟨10.48611/isbn.978-2-406-18573-4.p.0071⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05557651

DOI: 10.48611/isbn.978-2-406-18573-4.p.0071

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