The Relationship between Informal Economy and GDP Growth: A Study on South-Asian Developing Countries
Md. Touhidul Islam ,
Md. Jahangir Alam
Abstract
The informal economy has gained increased attention from policy-makers and development practitioners, especially in South-Asian developing countries. Though measuring the informal economy is difficult, statistics show the rate of employment creation by the informal sector in this region is higher than the rest of the world. But the GDP rate of growth in this region is still emerging in the global economic competition, which indicates its effectiveness in the South-Asian region. The study was carried out to identify the relationship between the informal economy and the GDP growth in South-Asian developing countries. The target population was the economies of 8 South-Asian countries, which were also taken as the sample size. Data was collected from secondary sources and analyzed using multiple regression analysis. Results indicated that there is a significant positive connection between the informal economy and the GDP rate of growth rate in South Asian developing countries. Therefore, policy-makers and expansion practitioners in this region must emphasize the informal sector entrepreneurs to ensure constant economic growth and development.
Keywords
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Lecturer, Department of Business Administration, Gono University, Bangladesh
Cite this article
Islam MT, and Alam MJ. (2019). The relationship between informal economy and GDP growth: a study on South-Asian developing countries. Can. J. Bus. Inf. Stud., 1(5), 01-09. https://doi.org/10.34104/cjbis.019.0109
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