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Determinants of the informal economy of an emerging economy: a multiple indicator, multiple causes approach

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journal contribution
posted on 2016-10-14, 13:11 authored by Eghosa Igudia, Rob Ackrill, Simeon ColemanSimeon Coleman, Carlyn Dobson
© 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.

History

School

  • Business and Economics

Department

  • Economics

Published in

International Journal of Entrepreneurship and Small Business

Volume

28

Issue

2-3

Pages

154 - 177

Citation

IGUDIA, E. ...et al., 2016. Determinants of the informal economy of an emerging economy: a multiple indicator, multiple causes approach. International Journal of Entrepreneurship and Small Business, 28(2-3), pp. 154-177.

Publisher

© Inderscience

Version

  • AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

2015-12-15

Publication date

2016-05-18

Notes

This paper was accepted for publication in the journal International Journal of Entrepreneurship and Small Business and the definitive published version is available at http://dx.doi.org/10.1504/IJESB.2016.076643

ISSN

1476-1297

eISSN

1741-8054

Language

  • en