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Modelling Poverty Dimensions of Urban Informal Sector Operators in a Developing Economy

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  • Mahendra Reddy

Abstract

Rising poverty is a cause of concern for international, regional and local organisations and policy makers. A contributing factor is urbanisation and growth in the urban informal economy which has both beneficial and detrimental effects on the urban formal economy. This study utilises primary data from two cities and a town to examine the contribution of the urban informal sector to employment creation and poverty alleviation. The findings reveal a significant positive contribution of the informal sector towards poverty alleviation and income generation. Les organisations locales, régionales et internationales ainsi que les décideurs politiques sont inquiets face à la montée rapide de la pauvreté. L'expansion du secteur urbain informel qui résulte du processus d'urbanisation a également contribué à l'accroissement de la pauvreté urbaine. La croissance de l'économie urbaine informelle a des conséquences à la fois positives et négatives sur l'économie urbaine formelle. Cette étude se base sur les données primaires de deux grandes villes et d'une ville moins importante pour analyser le rôle du secteur urbain informel dans la création d'emploi et l'atténuation de la pauvreté. Les conclusions montrent que le secteur informel contribue de façon importante à la réduction de la pauvreté et à la génération de revenus.

Suggested Citation

  • Mahendra Reddy, 2007. "Modelling Poverty Dimensions of Urban Informal Sector Operators in a Developing Economy," The European Journal of Development Research, Taylor and Francis Journals, vol. 19(3), pages 459-479.
  • Handle: RePEc:taf:eurjdr:v:19:y:2007:i:3:p:459-479
    DOI: 10.1080/09578810701504461
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    Cited by:

    1. Sajedul Islam Khan & Md Nazirul Islam Sarker* & Nazmul Huda & A. B. M. Nurullah & Md Rafiuz Zaman, 2018. "Assessment of New Urban Poverty of Vulnerable Urban Dwellers in the Context of Sub-Urbanization in Bangladesh," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 4(10), pages 184-193, 10-2018.
    2. Andes Chivangue & Carlos Barros, 2017. "Poverty and Informal Trade," CEsA Working Papers 151, CEsA - Centre for African and Development Studies.
    3. Erkko Autio & Kun Fu, 2015. "Economic and political institutions and entry into formal and informal entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 67-94, March.

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