Regulation, enforcement and informality: an analysis based on selected countries

Punarjit Roychowdhury

MPRA Paper from University Library of Munich, Germany

Abstract: It is claimed that introducing flexibility in regulation is a sufficient condition for curbing the level of informality in the developing world. This dissertation tries to test the validity of this claim using data for 46 countries over the time period 1980-2008 to explore the dynamics between regulation and informal employment. The empirical findings obtained using Panel Data regression point out that regulation does not significantly affect informality. What matters is the interaction between governance and regulation. Thus, it is established that the quality of governance and the institutions enforcing the regulation are more important in context of curbing the level of informality. In addition, the dissertation also tries to find out the most important instruments of regulation that a state can put to use in context of informality.

Keywords: Informality; Regulation; Enforcement; Governance; Panel Data (search for similar items in EconPapers)
JEL-codes: C33 C40 J01 J08 L00 L50 L51 O17 (search for similar items in EconPapers)
Date: 2011-06-15
New Economics Papers: this item is included in nep-iue and nep-reg
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