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We consider two vertical links between informal- and formal-sector firms and study their implications. In one case, the final products produced by the formal- and informal-sector firms are vertically differentiated in terms of quality, and the size of the informal sector demand is related to the...
Persistent link: https://www.econbiz.de/10012509881
How does imperfect law enforcement affect drug trafficking, predation on firms, informality, and aggregate production? To quantify it, a general equilibrium occupational model is developed in which there is room for drug trafficking, crime against businesses, and tax evasion in the presence of...
Persistent link: https://www.econbiz.de/10013464817
The soliciting of personal favours for and from others in order to circumvent formal procedures is a common practice across the world, variously known as guanxi, wasta, blat, and jeitinho. Until now, however, there have been no known empirical studies of this practice in South-East Europe. This...
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determinants such as: corruption, regulation and bureaucracy, quality of public and government services, detection probability …
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informal sector in the presence of corruption. The impact of the interaction between growth and corruption on economic … the empirical literature because it studies the effect of the interaction between growth and corruption in the informal …, economic growth interacts with corruption and produces negative net effects up to a corruption threshold of 4.79745 when this …
Persistent link: https://www.econbiz.de/10012817792
. Using a large annual panel of African countries with a time series of 25 years, ours results show that when the corruption … rate is above (below) a threshold of 1.3577, economic growth reduces (increases) informal economic sector. The corruption … proxy is measured as a decreasing function of corruption such that higher levels of the corruption proxy translate lower …
Persistent link: https://www.econbiz.de/10012817802
This paper exploits a unique dataset on corruption and informal sector employment in 476 Brazilian municipalities to … estimate whether corruption impacts GDP or income levels once variation in informal economic activity is taken into account …. Overall, I find that higher levels of corruption and a larger informal economy are generally associated with poor economic …
Persistent link: https://www.econbiz.de/10013005995