Does the Informal Sector Thrive Under Democracy or Autocracy?: The Case of Nepal : WestminsterResearch

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Title	Does the Informal Sector Thrive Under Democracy or Autocracy?: The Case of Nepal
Type	Journal article
Authors	Solomon, H. and Shrestha, S.
Abstract	Our paper investigates the size and development of the informal sector in Nepal using aggregate data over the period 1991 to 2009. Our estimation using the Multiple Indicator Multiple Cause (MIMIC) model shows that the average size of the informal sector has been about 44%. Nepal has been classified as having a hybrid political regime, so we show the effect that autocracy and democracy has had on the growth of the informal sector. Our results shows that a high degree of autocracy reduced the size of the informal sector by about 2% while greater direct democracy reduced the informal sector by about 10%.
Keywords	Autocracy, Democracy, Informal Sector, MIMIC, Nepal
Journal	Journal of Developing Areas
Journal citation	48 (3), pp. 245-267
ISSN	0022-037X
Year	2014
Publisher	Western Illinois University
Publisher's version	JDA_(2014)(1).pdf
Digital Object Identifier (DOI)	https://doi.org/10.1353/jda.2014.0044
Web address (URL)	https://muse.jhu.edu/article/543880/pdf
	http://muse.jhu.edu/article/543880
Published	04 May 2014

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Does the Informal Sector Thrive Under Democracy or Autocracy?: The Case of Nepal

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