This article is an attempt to explain the complex relationship of ethnic diversity and its participation in informal economy by utilizing the data of 187 countries of the world. How ethnic diversity, whether in any shape linguistic or religious may enhance the size and development of informal economy. The outcome of the study reveals the significant role of ethnic diversity for the development of informal economy.
AhlerupP.OlssonO. (2012). The roots of ethnic diversity. Journal of Economic Growth, 17(2), 71–102.
2.
AhmadN.AminS. (2020). Does ethnic polarization stimulate or relegate trade and environmental performance? A global perspective. Environment, Development and Sustainability, 22(7), 6513–6536.
3.
AlesinaA.DevleeschauwerA.EasterlyW.KurlatS.WacziargR. (2003). Fractionalization. Journal of Economic Growth, 8(2), 155–194.
4.
AlesinaA.RodrikD. (1994). Distributive politics and economic growth. The Quarterly Journal of Economics, 109(2), 465–490.
5.
AlesinaA.SpolaoreE. (1997). On the number and size of nations. The Quarterly Journal of Economics, 112(4), 1027–1056.
6.
AlesinaA.TabelliniG. (1989). External debt, capital flight and political risk. Journal of International Economics, 27(3–4), 199–220.
7.
AminS. (2019a). Diversity enforces social exclusion: Does exclusion never cease?Journal of Social Inclusion, 10(1), 4–23. https://doi.org/10.36251/josi.161
8.
AminS. (2019b). The endless nexus between ethnic diversity, social exclusion and institutional quality of Pakistan. International Journal of Sociology and Social Policy, 39(3/4), 182–200. https://doi.org/10.1108/IJSSP-06-2018-0108
9.
AminS. (2019c). Exploring nexus among diversity, stressful living environment and health outcomes: A global perspective. Ethiopian Journal of Health Development, 33(4). https://www.ajol.info/index.php/ejhd/article/view/195103
10.
BaierS. L.BergstrandJ. H. (2001). The growth of world trade: Tariffs, transport costs, and income similarity. Journal of International Economics, 53(1), 1–27.
11.
BakloutiN.BoujelbeneY. (2019). Shadow economy, corruption, and economic growth: An empirical analysis. The Review of Black Political Economy, 47(3), 276–294.
12.
BaltagiB. H.SongS. H.KohW. (2003). Testing panel data regression models with spatial error correlation. Journal of Econometrics, 117(1), 123–150.
13.
BangasserP. E. (2000). The ILO and the informal sector: An institutional history. International Labour Organization.
14.
BatnitzkyA.McDowellL. (2013). The emergence of an ‘ethnic economy’? The spatial relationships of migrant workers in London’s health and hospitality sectors. Ethnic and Racial Studies, 36(12), 1997–2015.
15.
BeckerK. F. (2004). The informal economy: Fact finding study. Swedish International Development Cooperation Agency.
16.
BenjaminN.BeegleK.RecanatiniF.SantiniM. (2014). Informal economy and the World Bank. The World Bank.
17.
BerdievA. N.GoelR. K.SaunorisJ. W. (2020). Dimensions of ethnic diversity and underground economic activity: Cross-country evidence. Public Finance Review, 48(2), 178–211.
18.
BlunchN.-H.CanagarajahS.RajuD. (2001). The informal sector revisited: A synthesis across space and time (Social Protection Discussion Papers, No. 119). World Bank.
19.
BrownD.McGranahanG. (2016). The urban informal economy, local inclusion and achieving a global green transformation. Habitat International, 53, 97–105.
20.
CastellsM. (2011). The rise of the network society: The information age: Economy, society, and culture (Vol. 1). Wiley.
21.
CastellsM.PortesA. (1989). World underneath: The origins, dynamics, and effects of the informal economy. In PortesA.CastellsM.BentonL. A. (Eds.), The informal economy: Studies in advanced and less developed countries (pp. 11–41). The Johns Hopkins University Press.
22.
ChenM. A. (2001). Women and informality: A global picture, the global movement. Sais Review, 21(1), 71–82.
23.
ChenM. A. (2012). The informal economy: Definitions, theories and policies (WIEGO Working Paper No. 1). Women in Informal Employment Globalizing and Organizing.
24.
ChenM. A.VanekJ.HeintzJ. (2006). Informality, gender and poverty: A global picture. Economic and Political Weekly, 41(21), 2131–2139.
25.
ChurchillS. A.SmythR. (2017). Ethnic diversity and poverty. World Development, 95, 285–302.
26.
ChurchillS. A.ValenzuelaM. R. (2019). Determinants of firm performance: Does ethnic diversity matter?Empirical Economics, 57(6), 2079–2105.
27.
CollierP. (1998). The political economy of ethnicity. World Bank.
28.
CollierP. (2001). Implications of ethnic diversity. Economic Policy, 16(32), 128–166.
29.
CollierP.ElbadawiI.SambanisN. (2000a). How much war will we see? Estimating the likelihood and amount of war in 161 countries, 1960-1998 [Unpublished mimeo]. The World Bank (January).
30.
CollierP.ElbadawiI.SambanisN. (2000b). Why are there so many civil wars in Africa? [Manuscript]. World Bank (February, 2000).
31.
DanopoulosC. P.ZnidaricB. (2007). Informal economy, tax evasion, and poverty in a democratic setting: Greece. Mediterranean Quarterly, 18(2), 67–84.
32.
De LucaG.HodlerR.RaschkyP. A.ValsecchiM. (2018). Ethnic favoritism: An axiom of politics?Journal of Development Economics, 132, 115–129.
33.
DoerrenbergP.PeichlA. (2013). Progressive taxation and tax morale. Public Choice, 155(3–4), 293–316.
34.
DuttaN.MukherjeeD. (2012). Is culture a determinant of financial development?Applied Economics Letters, 19(6), 585–590.
35.
EasterlyW.LevineR. (1997). Africa’s growth tragedy: Policies and ethnic divisions. The Quarterly Journal of Economics, 112(4), 1203–1250.
36.
FeigeE. L. (1990). Defining and estimating underground and informal economies: The new institutional economics approach. World Development, 18(7), 989–1002.
37.
Fernandez-KellyM. P.GarciaA. M. (1989). Informalization at the core: Hispanic women, homework, and the advanced capitalist state. In PortesA.CastellsM.BentonL. A. (Eds.), The informal economy: Studies in advanced and less developed countries (pp. 247–264). Johns Hopkins University Press.
38.
FurnivallJ. S. (1948). Colonial polity and practice. Cambridge University Press.
39.
GreeneW. (2005). Fixed and random effects in stochastic frontier models. Journal of Productivity Analysis, 23(1), 7–32.
40.
HandyJ. W. (1998). The shadow of the future and the complexity of cooperation. The Review of Black Political Economy, 26(2), 57–73.
41.
HardingP.JenkinsR. (1989). The myth of the hidden economy: Towards a new understanding of informal economic activity. Open University Press.
42.
HartK. (1973). Informal income opportunities and urban employment in Ghana. Journal of Modern African Studies, 11(1), 61–89.
43.
HornZ. E. (2010). The effects of the global economic crisis on women in the informal economy: Research findings from WIEGO and the Inclusive Cities partners. Gender & Development, 18(2), 263–276.
44.
HsiaoC. (1986). Analysis of panel data, econometric society monograph no. 11. Cambridge University Press.
45.
HudsonJ.WilliamsC.OrviskaM.NadinS. (2012). Evaluating the impact of the informal economy on businesses in South East Europe: Some lessons from the 2009 World Bank Enterprise Survey. South East European Journal of Economics and Business, 7(1), 99–110.
46.
International Labour Organization. (2002). Men in the informal economy: A statistical picture.
47.
JohnstonJ. (1972). Extensions of the general linear model. In: Econometric Methods (2nd ed., pp. 192–207). McGraw-Hill.
48.
KeenD. (2000). Incentives and disincentives for violence. Lynne Rienner Publishers; International Development Research Centre.
49.
La PortaR.Lopez-de-SilanesF.ShleiferA.VishnyR. (1999). The quality of government. The Journal of Law, Economics, and Organization, 15(1), 222–279.
50.
LassenD. D. (2003). Ethnic divisions and the size of the informal sector (No. 2003-01). EPRU Working Paper Series.
51.
LassenD. D. (2007). Ethnic divisions, trust, and the size of the informal sector. Journal of Economic Behavior and Organization, 63(3), 423–438.
52.
LewisW. A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22(2), 139–191.
53.
MedinaL.JonelisM. A. W.CangulM. (2017). The informal economy in Sub-Saharan Africa: Size and determinants. International Monetary Fund.
54.
MedinaL.SchneiderF. (2018). Shadow economies around the world: What did we learn over the last 20 years?International Monetary Fund.
55.
MeierG. M.RauchJ. E. (2005). Leading issues in economic development. Oxford University Press.
56.
MishraA.RayR. (2010). Informality, corruption, and inequality [Bath Economics Research Paper, 13(10)]. University of Bath.
57.
NafzigerE.AuvinenJ. (2003). Economic development, inequality and war: Humanitarian emergencies in developing countries. Springer.
58.
OffeC.HeinzeR. G. (1992). Beyond employment: Time, work, and the informal economy. Temple University Press.
59.
OjieA. E.EwhrudjakporC. (2009). Ethnic diversity and public policies in Nigeria. Anthropologist, 11(1), 7–14.
60.
OtiteO. (2001). The challenge of ethnicity. Vanguard.
61.
PortesA.BlitzerS.CurtisJ. (1986). The urban informal sector in Uruguay: Its internal structure, characteristics, and effects. World Development, 14(6), 727–741.
62.
PortesA.CastellsM.BentonL. A. (1989). Conclusion: The policy implications of informality. In PortesA.CastellsM.BentonL. A. (Eds.), The informal economy: 300 Studies in advanced and less developed countries (pp. 298–312). The Johns Hopkins University Press.
63.
PortesA.HallerW. (2010). The informal economy. In SmelserN. J.SwedbergR. (Eds.), The handbook of economic sociology (pp. 403–426). Princeton University Press.
64.
PortesA.Sassen-KoobS. (1987). Making it underground: Comparative material on the informal sector in Western market economies. American Journal of Sociology, 93(1), 30–61.
65.
Reynal-QuerolM.MontalvoJ. G. (2005). Ethnic polarization, potential conflict and civil war. American Economic Review, 95(3), 796–816.
66.
RobersonQ. M.ParkH. J. (2007). Examining the link between diversity and firm performance: The effects of diversity reputation and leader racial diversity. Group & Organization Management, 32(5), 548–568.
67.
RobertsB. (1994). Informal economy and family strategies. International Journal of Urban and Regional Research, 18(1), 6–23.
68.
SamersM. (2005). The myopia of “diverse economies,” or a critique of the “informal economy.”Antipode, 37(5), 875–886.
69.
SassenS. (1994). The informal economy: Between new developments and old regulations. Yale Law Journal, 103, 2289–2304.
70.
SchneiderF.EnsteD. H. (2000). Shadow economies: Size, causes, and consequences. Journal of Economic Literature, 38(1), 77–114.
71.
SchneiderF.EnsteD. H. (2013). The shadow economy: An international survey. Cambridge University Press.
72.
SchneiderF.LinsbauerK.HeinemannF. (2015). Religion and the shadow economy. Kyklos, 68(1), 111–141.
73.
ScholzJ. T.LubellM. (1998). Trust and taxpaying: Testing the heuristic approach to collective action. American Journal of Political Science, 42(2), 398–417.
74.
SethuramanS. V. (1976). The urban informal sector: Concept, measurement and policy. International Labour Review, 114, 69–81.
75.
SindzingreA. (2006). The relevance of the concepts of formality and informality: A theoretical appraisal. In Guha-KhasnobisB.KanburR.OstromE. (Eds.), Linking the formal and informal economy: Concepts and policies (pp. 58–74). Oxford University Press.
76.
SlemrodJ. (2004). The Economics of Corporate Tax Selfishness. National Tax Journal, 57, 877–899.
77.
SutherlandA. (1997). Fiscal crises and aggregate demand: Can high public debt reverse the effects of fiscal policy?Journal of Public Economics, 65(2), 147–162.
78.
SvizzeroS.TisdellC. A. (2016). Economic evolution, diversity of societies and stages of economic development: A critique of theories applied to hunters and gatherers and their successors. Cogent Economics & Finance, 4(1), Article 1161322.
TokmanV. E. (1989). Policies for a heterogeneous informal sector in Latin America. World Development, 17(7), 1067–1076.
81.
TokmanV. E. (2007). The informal economy, insecurity and social cohesion in Latin America. International Labour Review, 146(1–2), 81–107.
82.
TorglerB. (2006). The importance of faith: Tax morale and religiosity. Journal of Economic Behavior & Organization, 61(1), 81–109.
83.
TorglerB.SchneiderF. (2009). The impact of tax morale and institutional quality on the shadow economy. Journal of Economic Psychology, 30(2), 228–245.
84.
United Nations, Department of Economic and Social Affairs, Population Division (2017). World Population Prospects: The 2017 Revision, Volume I: Comprehensive Tables (ST/ESA/SER.A/399).
85.
Van GroenouM. B.GlaserK.TomassiniC.JacobsT. (2006). Socio-economic status differences in older people’s use of informal and formal help: A comparison of four European Countries. Ageing & Society, 26(5), 745–766.
86.
VäyrynenR. (2003). Regionalism: Old and new. International Studies Review, 5(1), 25–51.
87.
WatkinsA.FerraraE. L. (2005). Ethnic diversity and economic performance. Journal of Economic Literature, 43(3), 762–800.
88.
WellerC. E.ZulfiqarG. (2013). Financial market diversity and macroeconomic stability (Political Economy Research Institute Working Paper, No. 332). Political Economy Research Institute, University of Massachusetts at Amherst.
89.
WilliamsC. C.WindebankJ. (2002). Informal employment in advanced economies: Implications for work and welfare. Routledge.
90.
World Bank. (2000). World Development Report 2000-2001: Attacking poverty.
91.
YanikkayaH. (2003). Trade openness and economic growth: A cross-country empirical investigation. Journal of Development Economics, 72(1), 57–89.