2134/22864
Eghosa Igudia
Eghosa
Igudia
Rob Ackrill
Rob
Ackrill
Simeon Coleman
Simeon
Coleman
Carlyn Dobson
Carlyn
Dobson
Determinants of the informal economy of an emerging economy: a multiple indicator, multiple causes approach
Loughborough University
2016
Determinants
Informal economy
Nigeria
MIMIC approach
Informal sector policies
Shadow economy
Emerging economies
Unemployment
Self-employment
Corruption
Taxation
Survival needs
Economics not elsewhere classified
2016-10-14 13:11:52
Journal contribution
https://repository.lboro.ac.uk/articles/journal_contribution/Determinants_of_the_informal_economy_of_an_emerging_economy_a_multiple_indicator_multiple_causes_approach/9494090
© Copyright 2016 Inderscience Enterprises Ltd.Positing the implementation of evidenced-based policies to manage the informal economy, our paper employs, in a novel way, the multiple-indicator, multiple-cause model and primary data, to identify the determinants of the Nigerian informal economy. Building on previous literature, relevant determinants of the informal economy were constructed from participants' responses to questions designed to solicit such information. We found the factors responsible for the origin and expansion of the Nigerian informal economy to include: unemployment, a need to be autonomous/self-employed, corruption of government officials/agencies, participants' desire to pay less tax, and participants' need to survive. The greatest influence, in terms of magnitude and impacts, comes from the 'participants' need to survive' factor, followed by corruption. Our policy recommendations follow these identified factors, and recognise the positive and important role played by the informal economy. Although country-specific, our findings/recommendations may be used to inform policy in other countries with similar economic structures as Nigeria.