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Formal and Informal Sectors in China and India: An Accounting-Based Approach

Codrina Rada

Working Paper Series, Department of Economics, University of Utah from University of Utah, Department of Economics

Abstract: This paper discusses the estimation of a social accounting matrix that distinguishes between formal and informal activities for China and India for 2000 and 1998-99 respectively. Wage shares for the formal/informal employment for China and net domestic product shares for the formal/informal sectors for India are being applied as weights to the input-output tables and flow of funds tables provided by official statistics. While some estimation techniques used in this paper remain vulnerable to criticism, the proposed methodology is a first step towards an integrated approach to account for the dualism of many economies in the developing world. The results are important data input for any policy-driven CGE model for developing countries.

Keywords: informal sector; social accounting matrix; comparative economic systems; China; India (search for similar items in EconPapers)
JEL-codes: E01 E26 P44 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009
New Economics Papers: this item is included in nep-cna, nep-cwa, nep-dev and nep-tra
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Citations: View citations in EconPapers (2) Track citations by RSS feed

Published in Economic Systems Research, 2010, 22(2) 129-153.

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Persistent link: https://EconPapers.repec.org/RePEc:uta:papers:2009_02

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