Abstract
This study is about the level and factors of informality concerning the fresh meat market in the prefecture of Tirana-Albania. Sample data for 200 households have been used to carry out the study. Descriptive statistics, linear and logistic multinomial econometric modeling techniques are used to analyze the data. The level of informality is 34%, while its major factors are the level of price, as well as safety and quality of meat. Other determinants are household’s income and consumption quantity and ineffective public monitoring system, while the education of the household’s header seems of dubious effect. Important policy implications would be improving the legislation, regulations and the tax system performance. Other recommendations would be improving the rule of law to prevent informal selling and stimulate legal trade. Design and maintain a pro-poor business policy for a positive investment climate encouraging employment and income generation is a priority. Rigorous control of production standards and stimulation of good farming practices as well as improving detection and the use of repressive measures would be some necessities but also tough challenges for the future.
Highlights
The informal economy is carrying out economic activities unauthorized by law, to avoid paying taxes, social security contributions for employed people, and complying with certain regulations
Based on the stated need for new information and knowledge, the goal of the research is to investigate about informality and its reasons in the market of fresh meat
These results support our proposition that each of the variables could be used as substitutes of each other to measure the degree of the informality
Summary
The informal economy is carrying out economic activities unauthorized by law, to avoid paying taxes, social security contributions for employed people, and complying with certain regulations. Informal markets are part of the informal economy and they exist parallel with formal markets to meet certain demands of the population. The informal sector overwhelmingly addresses households and micro-enterprises with varying and limited purchasing power. There is a wide range of reasons why informal markets exist. Sometimes they exist to better satisfy the needs of certain segments of the population, being at the same time a tough challenge for the government to control it. It presents certain risks to the population, such as health and safety risks, in particular in the case of informal food markets
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