African Environmental Economics (Economics/Environmental crossover) | 22 July 2008
The Informal Economy's Contribution to Côte d'Ivoire's GDP: A Theoretical Framework
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Abstract
Côte d'Ivoire's economy is characterized by a significant informal sector which contributes to its Gross Domestic Product (GDP). Understanding the role of the informal economy in GDP can provide insights into economic stability and growth. No empirical data will be analysed; instead, a conceptual analysis grounded in existing literature on the informal sector will be employed to construct the theoretical framework. This study underscores the importance of recognising the informal economy as a significant contributor to Côte d'Ivoire’s GDP, advocating for policies that support both formalization and inclusivity. Policymakers should consider strategies that enhance the productivity and legal status of the informal sector without stifling its growth. This includes fostering entrepreneurship and improving access to finance.