What is an informal economy firm? A research agenda

The purpose of this article is to outline a research agenda to better understand the role and function of the firm in the informal economy. In doing so, it makes three basic points: First, informal economy firms prevail and... [ view full abstract ]

The purpose of this article is to outline a research agenda to better understand the role and function of the firm in the informal economy. In doing so, it makes three basic points: First, informal economy firms prevail and even preoccupy a dominant share of the economy activity in developing economies. Second, despite its size no real attempt has been made to integrate existing theories of the firm with the empirical importance of informal economy firms. Third, upon comparing existing explanations of the informal economy and dominant theories of the firm, a number of fruitful avenues for research emerge.