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Formal And Informal Sectors In China And India

Author

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  • Codrina Rada

Abstract

This paper discusses the estimation of a social accounting matrix that distinguishes between formal and informal activities for China and India for 2000 and 1998-99 respectively. Wage shares for formal/informal employment in China and net domestic product shares for organized/unorganized sectors in India are used as weights to calculate the size of the two sectors. The proposed methodology is a first step towards an integrated approach to account for the dualism of many economies in the developing world. The results can serve as data input for any policy-driven CGE model for developing countries.

Suggested Citation

  • Codrina Rada, 2010. "Formal And Informal Sectors In China And India," Economic Systems Research, Taylor & Francis Journals, vol. 22(2), pages 129-153.
    • Handle: RePEc:taf:ecsysr:v:22:y:2010:i:2:p:129-153
    DOI: 10.1080/09535314.2010.482924
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    Citations

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    Cited by:

    1. Anping Chen & Nicolaas Groenewold, 2017. "An increase in the retirement age in China: the regional economic effects," Applied Economics, Taylor & Francis Journals, vol. 49(7), pages 702-721, February.
    2. Gökçer Özgür & Ceyhun Elgin & Adem Y. Elveren, 2021. "Is informality a barrier to sustainable development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 45-65, January.
    3. Vasco Gabriel & Paul Levine & Joseph Pearlman & Bo Yang, 2010. "An Estimated DSGE Model of the Indian Economy," School of Economics Discussion Papers 1210, School of Economics, University of Surrey.
    4. Rada, Codrina & von Arnim, Rudiger, 2014. "India's structural transformation and role in the world economy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 1-23.
    5. Rada, Codrina & von Arnim, Rudiger, 2012. "Structural transformation in China and India: A note on macroeconomic policies," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 264-275.
    6. Mitoma, Haruka, 2023. "Carbon footprint analysis considering production activities of informal sector: The case of manufacturing industries of India," Energy Economics, Elsevier, vol. 125(C).
    7. Bino Paul & Krishna Muniyoor, 2024. "What Determines the Dichotomy between Formal and Informal Employment: Evidence from Maharashtra, India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(2), pages 483-499, June.
    8. Henrique Morrone, 2012. "Formal and Informal Sectors in a Social Accounting Matrix for Brazil," Working Paper Series, Department of Economics, University of Utah morrone_2012_09, University of Utah, Department of Economics.
    9. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.

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