2014-08-07
Informal sector dynamics in times of fragile growth : The case of Madagascar
Publication
Publication
The European Journal of Development Research , Volume 26 - Issue 4 p. 437- 455
Abstract
This article examines the dynamics of the informal sector in Madagascar during the 1995–2004 period, which was characterized by sustained growth that ended due to a major political crisis. As conventionally assumed by simple dualistic models, the informal sector indeed fulfils a labor-absorbing function in times of crisis. However, informal business creation was also a major trend both during macroeconomic growth and during crisis and recovery. Growth in the informal sector was mostly extensive, with little job creation or capital accumulation. Although such a situation would be consistent with the existence of poverty traps, estimated marginal returns to capital are decreasing, which tends to reject this hypothesis.
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doi.org/10.1057/ejdr.2014.29, hdl.handle.net/1765/77853 | |
EUR-ISS-EDEM | |
The European Journal of Development Research | |
Organisation | International Institute of Social Studies of Erasmus University (ISS) |
Vaillant, J., Grimm, M., Lay, J., & Roubaud, F. (2014). Informal sector dynamics in times of fragile growth : The case of Madagascar. The European Journal of Development Research, 26(4), 437–455. doi:10.1057/ejdr.2014.29 |