Développement financier et économie informelle dans les pays en développement

Abstract

The objective of our work is to assess the role of financial development in reducing the informal economy in developing countries. To achieve this, we use the Generalized Methods of Moments (GMM) to determine the indicators of financial development that reduce the informal economy in developing countries. The data used in this study covers a panel of 35 developing countries observed between 2003 and 2019. As a result, the informal economy in developing countries is more explained by the variable, Depth of Financial Institutions (DFI) and Access of Financial Institutions (AFI) and less explained by the variable: Efficiency of Financial Institutions (EFI).