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- W2593372273 abstract "In this paper we ask whether informal economy acts as a barrier to growth of GDP per-capita. Cross-country panel regressions for the period between 1960 and 2012 including 160 countries provide evidence for a robust negative relationship between size of informal economy and relative per capita income. Building on this evidence we simulate a simple two-sector (formal and informal) dynamic general equilibrium model and show that under the presence of an informal sector a larger fraction of the observed per capita income differences across countries can be accounted for." @default.
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- W2593372273 date "2016-12-29" @default.
- W2593372273 modified "2023-09-28" @default.
- W2593372273 title "Is Informality a Barrier to Convergence" @default.
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