The Informal economy in Algeria
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Date
2024
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Publisher
Université d’Oum El Bouaghi
Abstract
This study investigates the determinants and dynamics of the informal economy in Algeria and explores
policy implications in a developing country context. By employing both quantitative and qualitative
analyses, the study aims to identify key factors influencing the informal sector and assess its impact on
the national economy. Results indicate that taxation, labor regulations, and institutional quality
significantly contribute to the size of the informal economy, which comprises approximately 33% to
45% of Algeria's GDP. The findings also suggest that the informal economy acts as a buffer during
economic downturns, albeit with varying effectiveness. This research underscores the need for targeted
policy interventions to integrate the informal economy into the formal sector, enhancing both economic
growth and social protections.
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Keywords
Informal Economy ; Economic development ; Policy Implications ; Algeria ; Labor market dynamics