Urbanization, Governance and Informal Economy: an African Tale
Hermann Ndoya hegueu & Aristophane Djeufack dongmo
What the paper says
Using system Generalized Method of Moments (GMM), and Panel Smooth Transition Regression (PSTR) on an unbalanced panel data of 45 African countries over the period 2000-2015, this paper empirically analyzes the role of governance in the relationship between urbanization and informal economy. Our results show that there is a reverse U-shaped relationship between urbanization and the informal economy. At the earlier stage, urbanization increases informal economy in Africa, and in the later stage the effect of urbanization on informal economy decreases with the interaction of governance quality.
6 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.36 × 0.4 = 0.14 |
| M · momentum | 0.80 × 0.15 = 0.12 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.