Informality and Growth in Madagascar: Republic of Madagascar

By Ghislain Afavi, Coffi Agossou, Mokhtar Benlamine, Ialy Rasoamanana, Nombàna Razafinisoa, Veronique Salins

June 5, 2023

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Format: Chicago

Ghislain Afavi, Coffi Agossou, Mokhtar Benlamine, Ialy Rasoamanana, Nombàna Razafinisoa, and Veronique Salins. Informality and Growth in Madagascar: Republic of Madagascar, (USA: International Monetary Fund, 2023) accessed December 21, 2024

Summary

This chapter investigates the link between informality and growth in Madagascar and aims for a better understanding of the informal sector. It provides an analysis of the characteristics of informal production units and informal employment. Findings suggest that informality is a key feature of economic activity in Madagascar, and that informal production units are the main driver of employment with a deep concentration around self-employment. Overall, informality is associated with a lack of awareness of administrative procedures and the complexity and cost of tax and regulatory measures. The informal sector’s Total Factor Productivity (TFP) growth is more stable and higher on average than the formal sector TFP.

Subject: Economic sectors, Employment, Informal economy, Informal employment, International organization, Labor, Monetary policy, Production, Total factor productivity

Keywords: Copyright page, Employment, Growth in Madagascar, Informal economy, Informal employment, Informal sector, Informality and growth, Madagascar, Physical capital, Production unit, Sector TFP, Social security, Sub-Saharan Africa, Tax system, Total factor productivity

Publication Details

Pages:

17
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/036
Stock No:

SIPEA2023036
ISBN:

9798400244827
ISSN:

2958-7875

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