The development of the informal economy: A demand-side perspective
Published: July 25, 2026
Abstract
The informal economy makes a significant contribution to GDP but also presents numerous challenges in terms of management, tax collection, and social equity. This study examines the development of the informal economy from a demand-side perspective, employing economic theories to analyze the underlying causes and motivations driving participants in this sector. By exploring these factors, the study aims to provide a deeper understanding of the dynamics shaping the informal economy and offer insights into addressing its associated challenges.
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