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This study aims to bridge the gap in the existing literature by examining the impact of prevailing traditional slavery institutions and democratization processes on human capital development. In our pursuit, we conducted a residential survey in Sumba Island, Indonesia. Notably, despite...
Persistent link: https://www.econbiz.de/10014582366
, especially the top tier firms, become formal either because they perceive benefits of formalization such as an increase in the … the pre-formalization trends, our results show that productive household businesses stay informal because net costs from … tax payment may surpass net benefits from formalization. Moreover, government controls do not promote formalization …
Persistent link: https://www.econbiz.de/10011873992
The Philippines has a long history of internecine warfare or conflicts, especially in Mindanao where the secessionist conflicts alone since the 1970s have resulted in enormous human and economic costs. That violent social discords remain varied and widespread in Mindanao underscores the need for...
Persistent link: https://www.econbiz.de/10011796914
We build a general equilibrium model in which both illegal immigration and the size of the informal sector are endogenously determined. In this framework, we show that indirect policy measures such as tax reduction and detection of informal activities can be used as substitutes for border...
Persistent link: https://www.econbiz.de/10011407708
The aim of this paper is to evaluate two contrasting ways of explaining and tackling undeclared work. The rational economic actor approach theorizes undeclared work as arising when the benefits of undertaking undeclared work outweigh the costs, and the policy focus is upon deterring undeclared...
Persistent link: https://www.econbiz.de/10012588786
This paper provides an evidence-based evaluation of the competing ways of explaining and tackling the informal economy. Conventionally, participants have been viewed as rational economic actors who engage in the informal economy when the benefits outweigh the costs, and thus participation is...
Persistent link: https://www.econbiz.de/10012589274
This paper examines the relationship between the shadow economy and trade openness in Uganda, using autoregressive distributed lag bounds testing approach. We find that the shadow economy and trade openness have a long- and short-run relationship. These results hold even when alternative...
Persistent link: https://www.econbiz.de/10013183973
This paper investigates whether corruption has contributed to the rise of the shadow economy in Uganda. Using autoregressive distributed lag bounds testing approach and granger causality econometric methods we find a positive relationship between corruption and the size of the shadow economy in...
Persistent link: https://www.econbiz.de/10013183994
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
While there is general agreement that regulatory avoidance is an important part of firms' decisions to produce in the informal sector, there is much less agreement on how regulation and enforcement affect firms' decisions on, inter alia, which sector they locate in, their employment decisions,...
Persistent link: https://www.econbiz.de/10012592251