IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i4d10.1007_s13132-024-01806-2.html
   My bibliography  Save this article

State History and the Size of the Informal Economy: Does Control of Corruption Matter?

Author

Listed:
  • Seabrook Arthur Mveng

    (University of Yaounde II)

  • Atangana Ondoa Henri

    (University of Yaounde II)

Abstract

This study investigates how state history influences the size of the informal sector through control of corruption and its sub-components. The study employs ordinary and two-stage least square estimation techniques with data from 110 countries for the period 1993–2018 to examine this relationship. Our results show that the longer state history reduces the size of the informal economy through strict control of corruption. Moreover, among the four sub-measures of control of corruption studied, the strongest indirect effects occur via the control of executive (68%) and public sector (64%) corruption. Therefore, the fight against the expansion of the informal economy may face obstacles in countries with a short history of statehood, where the fight against corruption has not had sufficient time to develop. Policymakers should keep this in mind when designing their economic policies. Fighting corruption among leaders and officials is a crucial part of implementing policies to combat the growing size of the informal sector.

Suggested Citation

  • Seabrook Arthur Mveng & Atangana Ondoa Henri, 2024. "State History and the Size of the Informal Economy: Does Control of Corruption Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 17213-17231, December.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01806-2
    DOI: 10.1007/s13132-024-01806-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-01806-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-01806-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01806-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.