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Informality, Growth, and Development in Africa

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  • Nancy Benjamin
  • Ahmadou Aly Mbaye

Abstract

The informal sector makes up an overwhelming share of both gross domestic product and total employment in Africa. In this paper, we lay out some of the basic characteristics of the informal sector in sub-Saharan Africa, relevant institutions, and development issues. Proposed policy approaches recognize both that the great capacity of the informal sector is not easily harnessed into formal systems, and that development is problematic when the bulk of economic activity operates outside of the formal regulatory regime.

Suggested Citation

  • Nancy Benjamin & Ahmadou Aly Mbaye, 2014. "Informality, Growth, and Development in Africa," WIDER Working Paper Series wp-2014-052, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2014-052
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-052.pdf
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    2. Sam Z. Njinyah & Simplice A. Asongu, 2023. "Unregistered Firms, Financial Access and Innovation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2), pages 307-346, July.
    3. Mpofu Favourate Y Sebele, 2021. "Informal Sector Taxation and Enforcement in African Countries: How plausible and achievable are the motives behind? A Critical Literature Review," Open Economics, De Gruyter, vol. 4(1), pages 72-97, January.
    4. Assefa, Dawit Z. & Liao, Ching T. & Misganaw, Bisrat A., 2022. "Unpacking the negative impact of initial informality on innovation: The mediating roles of investments in R&D and employee training," Technovation, Elsevier, vol. 114(C).
    5. Ahmadou Aly Mbaye & Nancy Benjamin & Stephen Golub & Jean-Jacques Ekomie, 2014. "The Urban Informal Sector in Francophone Africa: Large Versus Small Enterprises in Benin, Burkina Faso and Senegal," Working Papers 201405, University of Cape Town, Development Policy Research Unit.
    6. Rafaela Bastidas & Nicolás Acosta, 2019. "Misallocation and manufacturing TFP in Ecuador: formal, semi-formal and informal firms," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-29, December.
    7. Favourate Y Sebele-Mpofu & Nomazulu Moyo, 2021. "An Evil to be Extinguished or a Resource to be harnessed-Informal Sector in Developing Countries: A Case of Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 13(3), pages 53-72.
    8. Stephen S. Golub & Janet Ceglowski & Ahmadou Aly Mbaye & Varun Prasad, 2018. "Can Africa compete with China in manufacturing? The role of relative unit labour costs," The World Economy, Wiley Blackwell, vol. 41(6), pages 1508-1528, June.
    9. repec:nam:befdwp:10 is not listed on IDEAS
    10. Colin C. Williams & Kwame Adom & Ioana Alexandra Horodnic, 2020. "Determinants Of The Level Of Informalization Of Enterprises: Some Evidence From Accra, Ghana," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 25(01), pages 1-24, March.
    11. Elizabeth Ruppert Bulmer, 2018. "Defining informality vs mitigating its negative effects," IZA World of Labor, Institute of Labor Economics (IZA), pages 442-442, August.
    12. Fu, Xiaolan & Mohnen, Pierre & Zanello, Giacomo, 2018. "Innovation and productivity in formal and informal firms in Ghana," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 315-325.
    13. Beegle,Kathleen G. & Benjamin,Nancy Claire & Recanatini,Francesca & Santini,Massimiliano, 2014. "Informal economy and the World Bank," Policy Research Working Paper Series 6888, The World Bank.
    14. Jozef Pacolet & Joris Vanormelingen, 2015. "Illicit Financial Flows: concepts and first macro estimates for Belgium and its 18 preferred partner countries," BeFinD Working Papers 0110, University of Namur, Department of Economics.
    15. M. Narayana, 2015. "India’s Age Structure Transition, Sectoral Labor Productivities, and Economic Growth: Evidence and Implications Based on National Transfer Accounts," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(3), pages 381-415, June.

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