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Can we understand the simultaneous evolution between economic and informality growth in Africa? A preliminary explanation

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  • Loudi Njoya
  • Ibrahim Ngouhouo
  • Moussa Njoupouognigni
  • Schneider Friederich
  • Zenabou Tourere

Abstract

This paper is interested in explaining the causes of the simultaneous evolution between economic and informality growth. Using a large annual panel of African countries with a time series of 25 years, our results are paradoxical: the effect of growth on the informal sector becomes contradictory in the presence of high corruption rates. When the corruption rate is low (>1.3577), growth is indirectly related to the informal sector and vice versa when it is high (

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  • Loudi Njoya & Ibrahim Ngouhouo & Moussa Njoupouognigni & Schneider Friederich & Zenabou Tourere, 2024. "Can we understand the simultaneous evolution between economic and informality growth in Africa? A preliminary explanation," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 398-414, January.
    • Handle: RePEc:wly:jintdv:v:36:y:2024:i:1:p:398-414
    DOI: 10.1002/jid.3810
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