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Informal sector dynamics in times of fragile growth: The case of Madagascar.
- Source :
-
European Journal of Development Research . Sep2014, Vol. 26 Issue 4, p437-455. 19p. - Publication Year :
- 2014
-
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. [ABSTRACT FROM AUTHOR]
- Subjects :
- *BUSINESS enterprises
*BIG business
*CORPORATE growth
*INFORMAL sector
Subjects
Details
- Language :
- English
- ISSN :
- 09578811
- Volume :
- 26
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- European Journal of Development Research
- Publication Type :
- Academic Journal
- Accession number :
- 97828109
- Full Text :
- https://doi.org/10.1057/ejdr.2014.29