Is the Informal Sector Constrained from the Demand Side? : Evidence for Six West African Capitals
Employing a unique dataset that covers households from six West African capitals, this paper provides new evidence on the demand for informal sector products and services. Authors first investigate whether demand linkages exist between formal and i...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/350791468161961228/Is-the-informal-sector-constrained-from-the-demand-side-Evidence-for-six-West-African-capitals http://hdl.handle.net/10986/27330 |
| Summary: | Employing a unique dataset that covers
households from six West African capitals, this paper
provides new evidence on the demand for informal sector
products and services. Authors first investigate whether
demand linkages exist between formal and informal products
and distribution channels. In a second step, authors
estimate demand elasticity's based on Engel curves.
Authors find strong demand-side linkages between the formal
and informal sector, with the exception that informal goods
are hardly bought through formal distribution channels. The
estimated demand elasticity's tend to show that rising
incomes are associated with a lower propensity to consume
informal sector goods and to use informal distribution channels. |
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