Medfouni, Hynda2025-04-132025-04-132024http://dspace.univ-oeb.dz:4000/handle/123456789/21723This 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.enInformal Economy ; Economic development ; Policy Implications ; Algeria ; Labor market dynamicsArticle