ANALYSE DE L'ECONOMIE INFORMELLE EN COTE D'IVOIRE: DETERMINANTS ET TAILLE

ANALYSIS OF THE SHADOW ECONOMY IN COTE D'IVOIRE: DETERMINANTS AND SIZE

Siméon Koffi

MPRA Paper from University Library of Munich, Germany

Abstract: The shadow economy exists in all countries (developed and developing). This sector, which in many countries escapes any measure, causes distortions in the formal economy. It is to reduce its effect on the economy that this study was initiated to identify its determinants and its size. For the econometric analysis the MIMIC approach was preferred. The results of the study show that of the four causal variables identified (labor force, growth rate of the economy, financial development, and tax burden) only two have significant effects on the size of the informal sector: financial development and tax burden. The latter two variables have positive multiplier effects on the informal economy: 1% increase in one of these determinants could increase the size of the informal economy by almost 2%. Over the study period, 2000-2020, the size of the informal economy (% of GDP) in Côte d'Ivoire is in the range [41; 47].

Keywords: Shadow economy; MIMIC; causal variables (search for similar items in EconPapers)
JEL-codes: A10 C1 D0 (search for similar items in EconPapers)
Date: 2022-08-06, Revised 2022-09-06
New Economics Papers: this item is included in nep-fdg and nep-iue
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