The Informal Sector in Developing Countries

摘要: This study documents four key facts about informal economic activities: (1) the size of sector varies greatly across nations; (2) this is strongly correlated with development, tax burden, and rule law; (3) emphasizes small-scale, self-financed unskilled labour intensive activities; (4), while financial markets are generally segmented along formal/informal lines in developing nations there no compelling evidence that true for markets. We review existing theoretical literature on describe a simple model tradeoff between evasion access to formal sources outside finance which consistent much evidence. Finally, discusses challenges associated measuring assets.