Analyzing The Informal Economy In Algeria From An Institutional Perspective

Résumé: Abstract. Institutions matter for economic growth. In as much as the informal economy is one of the undesirable effects of the institutional change of the economy towards the market economy, the question is which kind of these institutions matter more. The informal economy is a social and economic phenomenon, which has an impact on the formal economy. Among its main drivers, the formal and the informal institutions that affect the agents’ behaviors to enter the informal economy. The emphasis of this paper is on the impact of institutional settings in shaping the incentives that drive economic agents to conceal their activities. Besides, analyzing how informality interacts with these institutional settings help better understanding the contribution of the formal and informal institutions in the rising size of informality in Algeria basing on several international indicators.

Publié dans la revue: Revue d'études sur les institutions et le développement