EconPapers    
Economics at your fingertips  
 

The size of informal economy in Pakistan

Muhammad Arby (), Muhammad Jahanzeb Malik and Muhammad Hanif ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper estimates the size of informal economy in Pakistan by using monetary approach with some modifications, electricity consumption approach and MIMIC model. Under monetary approach, we take care of the issue of the stationarity of variables and use autoregressive distributed lag (ARDL) model instead of simple OLS and add education as an additional factor affecting the size of informal economy along with some other technical improvements in the standard monetary models. The electricity consumption approach and MIMIC models are used for the first time in case of Pakistan. The results show that the informal economy in Pakistan has been about 30 percent of the total economy which declined considerably in 2000s. Currently, about 20 percent of the economic transactions are taking place in the informal sector.

Keywords: Informal Economy; ARDL; MIMIC (search for similar items in EconPapers)
JEL-codes: E26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-mac
Date: 2010-05-07
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/22617/1/MPRA_paper_22617.pdf original version (application/pdf)

Related works:
Working Paper: The Size of Informal Economy in Pakistan (2010) Downloads
Working Paper: The Size of Informal Economy in Pakistan (2010) Downloads
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:pra:mprapa:22617

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2018-08-18
Handle: RePEc:pra:mprapa:22617