Impacts of globalization on the informal sector: Empirical evidence from developing countries

Pham, Thi Hong Hanh

doi:10.1016/j.econmod.2017.01.001

Cited by 36 publications

(38 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Trade liberalisation has the consequence of spillovers of workers from the formal sector to the informal sector as a result of the drop in demand and supply of goods and services. This unabsorbed labour may then take a new opportunity or be self-employed [15,16]. This situation plays crucial roles in the reallocation of resources to the informal sector, thus reducing apparent unemployment in the economy.…”

Section: Informal Sector Entrepreneurship and Its Economic Impactsmentioning

confidence: 99%

Informality and Entrepreneurship in Developing Economy: Case for Entrepreneurial Financing

Omotosho¹

2021

Accounting and Finance Innovations

View full text Add to dashboard Cite

Over a decade ago, scholars in different domains of knowledge such as strategic management, economics, accounting, and finance have largely contributed to the theoretical and empirical studies of entrepreneurial financing. However, bridging of the domains or the theories that underly the domains, and expanding the frontier of the phenomenon in the context of informal entrepreneurship, are missing in the literature. This paper attempts to conceptualise and problematise various issues that confront informal sector entrepreneurship in accessing adequate financing for start-up opportunity, innovative products, services and technology in the informal markets, and explore how the ambiguity of the diverse domains of knowledge of entrepreneurial financing could be resolved by unifying and integrating the domains within a unique framework. Equally, this paper also aims to provide theoretical contributions to the extant literature of entrepreneurial financing by suggesting how management accounting research can bridge the gaps of informality problems that confront informal entrepreneurial financing. There is no doubt that informal businesses are saddled with legitimacy concerns such as non-conformity with legality and institutionalised policies. Similarly, the sector is also confronted with the issues of information asymmetry, moral hazard conflict, informal financial and ownership structure. Nonetheless, the informal entrepreneurship sector unarguably has a relevance to the opportunity discovery and innovativeness dimensions of entrepreneurial orientation, with the consequence of positive contributions to the economy in terms of large-scale employment growth. Hence, the scholars in the accounting discipline can leverage on the emerging different financial technology and fund providers to expand the literature on how the untold hardships and complexity that surround the funding of informal entrepreneurial start-ups and innovation can be mitigated. Management accounting discipline, being an applied field of strategic management can play vital roles in mitigating the aforesaid problems of informal entrepreneurship funding, if it could focus on expanding the literature or methodology on goal congruence, information management and controls, financial contracting model, incentive modelling for regulatory policy and search and match model that focuses on informal entrepreneur, investors and financial intermediaries.

show abstract

Section: Informal Sector Entrepreneurship and Its Economic Impactsmentioning

confidence: 99%

Informality and Entrepreneurship in Developing Economy: Case for Entrepreneurial Financing

Omotosho¹

2021

Accounting and Finance Innovations

View full text Add to dashboard Cite

show abstract

“…Buna karşın farklı kayıt dışı ekonomi tahmin verilerini kullanan ve farklı ülke ya da ülke gruplarını ele alan çalışmalar, iki değişken arasındaki ilişki konusunda farklı sonuçlar elde etmişlerdir. Ülkelerin makroekonomik görünümlerine (Kearney, 2006: 80;Pham, 2017) ve kayıt dışı ekonomi verilerine göre değişebilecek olan sonuçlar, diğer yandan kayıt dışı ekonominin dijital boyutunu kapsamamaktadır. Dijital alanda yaşanan küreselleşme sonucunda artan dijital kayıt dışı faaliyetlerin henüz anket çalışmaları haricinde (Gaspareniene ve Remeikiene, 2016) tahmin edilmemesi, dijital boyutun kapsanmasını engellemiştir.…”

Section: Ampirik Literatürunclassified

The Effects of Human Capital and Globalization on Shadow Economy in Turkey: Fourier-ADL Approach

Pata

Ela

2021

Bingöl Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

View full text Add to dashboard Cite

Kayıt dışı ekonomi, hükümetlerin vergi gelirlerini azaltan önemli bir problemdir. Bu nedenle, kayıt dışı ekonominin belirleyicilerini tespit etmek amacıyla birçok araştırmacı ampirik çalışmalar yürütmüştür. Küreselleşme ve beşerî sermayenin kayıt dışı ekonomi üzerindeki etkilerini inceleyen teorik çalışmalar olmasına karşın ampirik çalışmaların sayısı oldukça kısıtlıdır. Önceki çalışmalar ile ulaşılan sonuçlar iki değişken arasındaki ilişkinin negatif veya pozitif olabileceğini ve bu ilişkinin ülkeye özgü koşullara göre değişebileceğini göstermektedir. Bu çalışma, Türkiye'de 1986-2015 döneminde beşerî sermaye ve küreselleşme indekslerinin kayıt dışı ekonomiye uzun dönemli etkilerini inceleyerek bu boşluğu doldurmayı amaçlamaktadır. Bunu yaparken, çalışma Fourier ADL yaklaşımı, tam değiştirilmiş en küçük kareler (FMOLS) ve dinamik en küçük kareler (DOLS) tahmincilerini kullanmaktadır.Küreselleşme ve beşerî sermayenin kayıt dışı ekonomi üzerindeki etkilerini eşanlı olarak sınayan bir çalışma bulunmaması nedeniyle, bu çalışma, literatüre bir katkıdır. Ampirik sonuçlar, küreselleşmenin kayıt dışı ekonomiyi azaltmada önemli bir rol

show abstract

“…There emerged a positive relationship between population growth rate and informal economy. It is supported by Pham (2017). The countries with high population growth tend to absorb most of the labor force in the informal sector.…”

Section: Informal Sector Economymentioning

confidence: 99%

Informal Sector Economy, Child Labor and Economic Growth in Developing Economies: Exploring the Interlinkages

Shahid

Khan

2020

Asian Development Policy Review

View full text Add to dashboard Cite

The study explores the interlinkages among informal sector, child labor and economic growth covering 50 developing economies for the time period 2001-2015 through 3SLS approach. The results show that informal sector positively influences child labor and child labor positively influences informal sector. It creates a vicious cycle of underdevelopment and poverty. Similarly child labor positively contributes in economic growth and economic growth enhances child labor in developing economies. However, informal sector increases economic growth but economic growth decreases informal sector. So there emerged a complex and discoursing interlinkage among informal sector, child labor and economic growth in developing economies. The informal sector is positively influenced by population growth. Child labor is also positively influenced by population growth and age dependency but negatively by globalization. Economic growth is positively influenced by capital formation, globalization and governance. A multidimensional approach is required for decreasing the size of informal sector economy and eliminating the child labor along with having good economic growth. Control of population growth is emerged one of them which may slide down informal sector economy and child labor. The capital formation and governance may be a part of the policy framework for economic growth. Contribution/ Originality: The study contributes to existing literature by estimating of relationship among informal sector, child labor and economic growth for a panel of developing economies. In the literature the simultaneous linkage among these variables was non-existent and the directions of relationship were varying between any of the two variables.

show abstract

Impacts of globalization on the informal sector: Empirical evidence from developing countries

Cited by 36 publications

References 27 publications

Informality and Entrepreneurship in Developing Economy: Case for Entrepreneurial Financing

Informality and Entrepreneurship in Developing Economy: Case for Entrepreneurial Financing

The Effects of Human Capital and Globalization on Shadow Economy in Turkey: Fourier-ADL Approach

Informal Sector Economy, Child Labor and Economic Growth in Developing Economies: Exploring the Interlinkages

Contact Info

Product

Resources

About