Informal Sector Of Economy Research Articles

The Impact of Morality on The Behavior of B40 Female Entrepreneurs in The Informal Economic Sector

Presently, spiritual aspects among people in the labor force sector are required to revive dwindling morale. This unethical behavior of entrepreneurial culture will create an unhealthy climate in the entrepreneurship ecosystem and directly impact the quality of the ummah. The major goal of this article is to conduct interdisciplinary research incorporating the effect of spiritual factors such as morality based on Islamic teachings and individual behavior in the realm of spirituality and the field of humanity. As a result, this study emphasizes the moral factor as the primary construct that predicts behavior using the fundamental model of adaptation from the Theory of Planned Behavior (TPB). The association between moral factors as the key variable that ties to the behavior and prospective success of B40 female entrepreneurs in the informal economy sector is tested by using PLS-SEM through hypothesis testing. The study's influence may be used as a reference for policymakers in implementing spiritual aspects and moral values development through various channels such as mosque institutions, zakat institutions, etc. In reality, in the context of global economic instability, it may be employed as a type of indirect learning to guarantee the community's quality of life complies with Sharia.

АНАЛІЗ СОЦІАЛЬНО-ЕКОНОМІЧНОЇ СКЛАДОВОЇ ЛЮДСЬКОГО ПОТЕНЦІАЛУ УКРАЇНИ

The main indicators of the labor market functioning are analyzed in the article, through which the socioeconomic component of human potential is characterized. Number of general scientific and special research methods were used during the research: the method of abstraction, analysis and synthesis, induction and deduction, graphic-analytical method, system analysis. The author considered the following criteria: population dynamics, unemployment rate (total, by sex, by age group and by region), gender gap in unemployment, part of young people who do not work, do not study and do not acquire professional skills (NEET generation), level employment (overall, by sex, by age groups and regions), gender gap in employment, part of self-employed and employed in the informal economy sector. On the basis of the research carried out by the author, it was found that the labor market of Ukraine is characterized by a demographic decline, which is also predicted during the next decades, a decrease in the number of economically active population; the dynamics of the level of unemployment in Ukraine is multidirectional, which in recent years was a consequence of the atypical nature of the COVID-19 pandemic; in the age structure of unemployment in Ukraine, there is a significant predominance of persons aged 15-24; in the gender structure of unemployment up to and including 2020, a significant male predominance was observed; the gender gap in unemployment is decreasing; part of young people aged 15-24 who do not work, do not study and do not acquire professional skills decreases at a slight rate; since 2019, the employment rate has a steady downward trend in all age groups, except for 50-59 years; the gender structure of employment shows a significant male predominance; the gender gap in employment is quite large; part of self-employed and employed in the informal sector of the economy has remained almost unchanged in recent years. Since 2018, the number of vacancies on the labor market has tended to decrease, while the number of unemployed has tended to increase. Based on the analysis of these indicators, were determined the global problems of the labor market and the formation of the socio-economic component of the Ukraine’s human potential.

INFORMAL ECONOMY SECTOR AS A CATALYST FOR NIGERIAN ECONOMY DEVELOPMENT AND SUSTAINABILITY: A REVIEW

Purpose: The informal economy is a major part of the global economy sector that provides the needed development approach through the use of local aspects, small market size and social capital generated by the sector for sustainability. This paper assessed the impacts or important of the informal sector on the economy development of Nigerian and its challenges for sustainability.
 Methodology: The Max Weber and Dudley Seers social developmental theory were used to explain the study, while some importance and challenges of the sector were explored.
 Results: The paper therefore concluded that since informal economy sector can help to reduce the focus from globalized to the local alternative path of development and sustainable future.
 Unique Contribution to Theory, Policy and Practice: The study recommends amongst other that efforts must made to understand the dynamics of the sector and how best to tap the potential that lies therein since it has the potential for Nigerian economy development. Secondly, policy to support the sector and to address the identified challenges towards improving, sustainability and productivity of the sector should made possible in Nigeria

Informal Economy Sector as a Catalyst for Nigerian Economy Development and Sustainability: A Review

Informal economy sector is a major part of the global economy that provides the needed or alternative economy development approach for sustainability. This paper assessed the impacts of informal sector on the economy development of Nigerian and its challenges for sustainability. The Max Weber and Dudley Seers social developmental theory were used to explained the study, while some importance and challenges of the sector were explored. The paper therefore concluded that since informal economy sector can improve/encourage economic standard of individuals and reduce the focus from globalized to the local alternative path of development and sustainable future, it then recommends amongst other that processes should put in place to capture the dynamics of the sector and the best way to tap into its potential since it has the capacity to increase Nigerian economy predicament and beyond. Also, policy to support and to address the identified challenges towards improving the sustainability and productivity of the sector should made possible in Nigeria and other related international state.
 
 Received: 10 April 2022 / Accepted: 30 June 2022 / Published: 5 July 2022

Investigating the Relationship Between Informal Economy and Competitiveness in Iran’s Metropolises

This article aims to analyze informal economy and competitiveness after the 1979 Revolution in Iran with an emphasis on its eight metropolitan cities. The research method is descriptive-analytical, and data is collected from official resources and statistics. The analysis for data related to economic competitiveness was carried out using technique for order of reference by similarity to ideal solution, entropy, and numerical taxonomy. The results of this study suggest that state modernism has been effective in the growth of urbanization and the decline of urbanization, which has changed Iranians’ life patterns from rural to urban in the wake of the 1979 Revolution. There is also a direct relationship between rural–urban migration and informal economic growth in the process of urbanization and urbanization in Iran. The informal economy sector, which accounts for 31% of Iran’s economy, ranks 30th in the world. The survey of informal economy in Iranian metropolises shows that 35% of its metropolises’ GDP comes from the informal economy. The results illustrate the imbalanced employment situation in these metropolises. The highest rate of female and male employees was recorded in Mashhad (81.16 and 90.55) and the lowest in Ahvaz (64.38 and 77.00), respectively. The majority of industrial workers lived in Qom (35.61), and the lowest number of industrial workers was in Mashhad (14.09). Also, the highest number of service workers was in Shiraz (78.40) and the lowest in Qom (54.34). Most of the agricultural labor force lived in Ahwaz (2.74) with Tehran hosting the lowest number of agricultural workers (0.98).

Effects of Covid-19 Pandemic on Informal Sector’s Women in Damak, Jhapa

Economic sectors are broadly categorized as formal and informal sectors. Informal sector is also known as informal economy and grey economy. Informal sectors are beyond the monitoring system and tax system of government. To explore social and economic effects ofcovid-19 on informal sector’s women, this study is conducted as the title of effects of covid-19 pandemic on informal sector’s women in damak, Jhapa. It is based on the theoretical assumption of feminism. It employs exploratory research design and is based on both primary and secondary sources of data. The study revealed that there are very bad effects ofcovid-19 pandemic on women’s livelihood, who are involved in informal economic sectors especially in street vending. The pandemic has indeed affected by decreasing the income of the women. The working condition in regards to hours of work per day and days of work per week has decreased significantly affecting the income. Additional problems such as less customer flow, low income, increased municipality eviction and lack of supplies of goods increased and led to indebtedness, and no saving at all during the pandemic. It suggests that concerned authorities should make effective institutional frameworks to empower women involved in informal sector of economy.

СОЦІАЛЬНО-ВІДПОВІДАЛЬНІ АСПЕКТИ АДМІНІСТРУВАННЯ ПОДАТКІВ: ВАЖЕЛІ ПРОТИДІЇ УХИЛЕННЮ ВІД ОПОДАТКУВАННЯ

No country in the world, no matter how hard it tries, could not, cannot and will not be able to get rid of the informal economy. The reality is that today, according to various experts, from one third to more than half of Ukraine's GDP is created in the informal sector of the economy. The informal economy in Ukraine is not a separate phenomenon, but the result of a systemic economic crisis, it affects all areas of economic activity, including the efficiency of the tax system, which in turn affects the stability and power of the state. For its part, one of the signs of the effectiveness of the tax system is the scale of the use of tax evasion schemes. The purpose of the article is to study the processes of tax administration from the standpoint of providing socially responsible service of the state fiscal service of Ukraine, the use of levers to combat tax evasion, provide recommendations for reducing the informal sector and the main schemes of tax evasion in Ukraine. The subject of the study is the informal sector and methods of preventing one of the consequences - tax evasion. Methods used in the study: systems analysis, economic and statistical methods, information processing, the method of logical generalization of results, expert assessments, etc. Presenting main material. The article examines the main trends in employment in the informal sector of the national economy. The essence of the concept of tax evasion and the reasons for it were revealed. The most common schemes as a result of which the budget of Ukraine suffers the greatest losses are indicated, during which proposals to improve tax administration as a significant lever for minimizing tax offenses in the field of tax evasion within the informal sector of the economy were identified. The practical significance of the obtained results lies in the possibility of using the developed recommendations for independent analysis of the economic situation in Ukraine. Conclusions and further prospects of the study. An analysis of various tax evasion mechanisms has shown that most of them are due to lack of control by fiscal authorities, weak level of development of the system of electronic administration of goods and funds between businesses and the inability to properly calculate and pay taxes. Therefore, from the proposed recommendations to reduce the amount and loss of the budget from tax evasion schemes within the informal sector of the economy, we can highlight that consistency is key. First of all, according to the priorities arising from the current rating, these are measures aimed at combating aggressive tax planning. This should be followed by the completion of VAT administration reform and, importantly, a further significant reduction in the share of the state, which should provide fiscal space for a significant reduction in income tax and abolition of labor tax, but this takes more time due to various problems in the country.

Simulation modeling of taxpayers’ behavior on the labor market in Ukraine

The article analyzes some components of the shadow economy using the example of modern Ukraine. The purpose of article is to predict the behavior of the economically active population when choosing an employment option using an agent-based simulation model. The work uses the methods of theoretical generalization, retrospective analysis – to study the theoretical aspects of socio-economic relations at the enterprise; system analysis, agent-based modeling – to develop a decision-making model in the labor market. The proposed algorithm of taxpayer behavior is based on studies of domestic and foreign scientists in the field of shadow economy and informal employment. Particular attention is paid to the national economic mentality as an important factor which determines the trajectory of the country’s development. As a substantiation of the subject’s behavior on the labor market, it is proposed to use the model of decision-making by a taxpayer, developed by M. Ellingham. When constructing an algorithm for the behavior of an employee, the demographic situation in Ukraine, the causes and consequences of labor migration, and the mental characteristics of the population were analyzed. The novelty of the proposed model lies in the fact that it takes into account the dependence of the taxpayer’s utility curve on the taxpayer’s age. The developed model was applied to forecasting of the demographic situation in Ukraine, and to estimation of the population participation in the informal economy sector.

The Shadow Economy: A Bibliometric Analysis

The article deals with the analysis of the areas of research related to the shadow economy. The results of analyses show that financial market and financial intermediates become an essential part of the issues and that the topic of the problem of poverty among the urban population, low income, drugs abuse and problems of female employment, gender inequity in income in the papers which analyzed the shadow economy issues are very popular. The aim of the paper is to analyze the tendency in the scientific literature on the shadow economy to identify future research directions. For the analysis, the tools of VOSviewer, Scopus and Web of Science (WoS) analyses were used. This study is based on 5361 papers from Scopus and 3773 papers from Web of Science. The time sample of research was not limited for analysis. Time analysis showed that in 2014-2015 the number of papers dealing the shadow economy began to increase. At the same time, the focal point of research moved from general issues (estimation of shadow sector, impact on labour market etc.) to problem of transition from the informal to the formal Economy. In 2019 the number of papers which analyzed the the shadow economy was increased by 95 % compared with the 2014 year, according to Scopus database – by 29%. Mostly the papers with keyword “shadow” (informal, hidden etc.) economy were published under the following subject area, according to Scopus: Social science; Economics, Econometrics and Finance; Business, Management and Accounting; Environmental Science; Arts and Humanities, and according to WoS: Business Economics; Sociology; Public Administration; Government Law; Development Studies; Social Sciences Other Topics; Environmental Sciences Ecology; Area Studies. Most articles focused on shadow economy were published by the scientists from the USA, United Kingdom, India, Germany and South Africa. In 2019 considering the findings from Scopus the high ranked Studies in Systems Decision and Control, Journal of Business Ethics, Journal of Contemporary Asia, Cities stated to publish papers devoted to shadow economy. Such results prove that informal economy theme and its transition to formal is in the ongoing trends of the modern regulation. The findings from VOSviewer identified six clusters of the papers which investigate the shadow economy from the different points of views. The first most significant cluster merged the paper which contained the keywords as follows: informal sector, informal economy, unemployment, gender, urban economy, labour market, corruption etc. The papers in the second largest cluster deal with poverty among urban population, low income, drugs abuse and problems of female employment, gender inequity in income. The third biggest cluster focuses on criminal and ecological aspects of shadow economy. Keywords: Shadow Economy, Shadow Sector of Economy, Informal Economy, Informal Sector of Economy, Underground Economy, Underground Sector of Economy, Hidden Economy, Hidden Sector of Economy.

POLITICAL CLIENTELISM AND CORRUPTION AS ECONOMIC AND SOCIAL EXCHANGE

Althout, scientific interest in the informal economy is from a recent date, there are already serious analyzes that define its forms, as well as standardized methods that measure its scope. In this text we will point out some theoretical dilemmas concerning informal economy as a sector emebeded deeply in the society as a whole. The informal economy sector can be understood as a rational response by people to the way of life, the environment, the way in which the institutions work, the economic development of society or the culture itself - despite the fact that some consequences have an irrational character (exploitation, discrimination, violation of human rights and freedoms). Special attention is paid to political clientelism and corruption as forms of informal economy with a special focus on the situation in R. of Macedonia.

ANALYSIS OF THE SHADOW ECONOMY AND ITS FISCAL EFFECTS IN UKRAINE

This article analyses the share of shadow economy in Ukraine and its effects on the domestic fiscal sphere. It was made an attempt to calculate the approximate tax losses, which was resulted by the informal sector of economy. Also, we tried to search the influence of the shadow economy on the consolidate budget revenue, expenditures and deficit. The results of this paper are: 1) the level of the shadow economy in Ukraine during last 5–10 years is between 34–43 % of GDP; 2) the annual average tax losses are about 15.4 % of official GDP, of which 10.4 % is the losses of central and local budgets, 5.0 % is the losses of Ukrainian Pension Fund; 3) it was empirically proven the influence of the shadow economy on the amount and the structure of expenditures of Consolidated Budget of Ukraine. We found strong support that the bigger size of informal sector leads to the reduction of the capital expenditures’ share in the general expenditures of Consolidated Budget of Ukraine. JEL Code: E620, O170, H260, H200, C 100.

Female labour force participation: evidence from Ghana

PurposeThe purpose of this paper is to examine female labour force participation (FLFP) and their employment choice between the formal and informal sectors after several institutional and social reforms such as Millennium Development Goal 3 aimed at promoting gender equality and empowerment of women by 2015, using data from Ghana’s 2010 Population and Housing Census.Design/methodology/approachIn this paper, logit regression and multinomial logit techniques were employed.FindingsThe results show that FLFP has declined marginally from the 2005 figures; education remains the important factor in determining women’s participation in the formal sector. Strikingly 91 per cent of the FLFP is engaged in the informal sector of the Ghanaian economy, a sector with a very low contribution per head.Practical implicationsInterventions such as encouraging female education and retraining of self-employed females to improve upon their efficiency ought to be pursued vigorously; whiles developing rural areas for females to get equal labour opportunities and many others aimed at enhancing the efficiency and by inference earning per head of the informal sector is highly recommended.Originality/valueThe literature on the FLFP is thin in Ghana. The current study uses a census data unlike the previous studies and as such employed a huge sample size that reflects the reality in Ghana. The study contributed immensely to policy having established that 91 per cent of the female labour force is engaged in the informal sectors of the economy, and therefore any intervention targeting at reducing poverty and meeting the MDG 3 should be targeted at the informal sector of the Ghanaian economy.

The Role of Social Health Protection in Reducing Poverty: The Case of Africa

This literature review aims to increase our knowledge of the potential that social health protection has in reducing poverty in sub-Saharan Africa. Of all regions in the world, sub-Saharan Africa ranks lowest in income per capita, life expectancy at birth, and highest in mortality. It is the only region with a negative growth for the period 1980-2000. Trapped in poverty and excluded from decent health care, the African poor have to face both the catastrophic costs of seeking health care and bear the burden of lost productivity. Evidence for the link between illness and poverty is particularly striking in the case of malaria and AIDS. Social protection is increasingly seen as a key strategy to contribute to poverty reduction and to sustainable development. But in Africa, where the informal economy sector remains huge and where poorly effective risk management strategies often prevail, there still is a long way to go. Community health insurance, however, appears to be an interesting option for meeting the goal of universal social protection. There is convincing evidence of its positive effect on access to health care. Moreover, community health insurance constitutes a promising channel to give voice to the poor. Today, this particular instrument of social health protection reaches only a small fraction of the African population, but enjoys a growing acceptance and is subject to increasing demands. Besides the ethical imperative of providing social protection, there is evidence today, albeit limited, indicating that the expansion of social health protection, by improving access to care, may increase people's participation in the labour market, improve their income and contribute to economic growth.