Determinants of the informal economy of an emerging economy: a multiple indicator, multiple causes (MIMIC) approach

Igudia, E, Ackrill, R ORCID: https://orcid.org/0000-0002-0739-1812, Coleman, S and Dobson, C, 2016. Determinants of the informal economy of an emerging economy: a multiple indicator, multiple causes (MIMIC) approach. International Journal of Entrepreneurship and Small Business, 28 (2/3), pp. 154-177. ISSN 1476-1297

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Abstract

Positing the implementation of evidenced-based policies to manage the informal economy, our paper employs, in a novel way, the multiple-indicator, multiple-cause model and primary data, to identify the determinants of the Nigerian informal economy. Building on previous literature, relevant determinants of the informal economy were constructed from participants' responses to questions designed to solicit such information. We found the factors responsible for the origin and expansion of the Nigerian informal economy to include: unemployment, a need to be autonomous/self-employed, corruption of government officials/agencies, participants' desire to pay less tax, and participants' need to survive. The greatest influence, in terms of magnitude and impacts, comes from the 'participants' need to survive' factor, followed by corruption. Our policy recommendations follow these identified factors, and recognise the positive and important role played by the informal economy. Although country-specific, our findings/recommendations may be used to inform policy in other countries with similar economic structures as Nigeria.

Item Type:	Journal article
Alternative Title:	Determinants of the informal economy of an emerging economy: a multiple indicator, multiple causes (MIMIC) approach
Publication Title:	International Journal of Entrepreneurship and Small Business
Creators:	Igudia, E., Ackrill, R., Coleman, S. and Dobson, C.
Publisher:	Inderscience
Date:	10 May 2016
Volume:	28
Number:	2/3
ISSN:	1476-1297
Identifiers:	Number Type 10.1504/IJESB.2016.076643 DOI
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	09 Mar 2016 15:02
Last Modified:	09 Jun 2017 13:59
URI:	https://irep.ntu.ac.uk/id/eprint/27108

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