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Essay Details:
Essay text:
Illegal or criminal activities such as drug dealing or prostitution have been excluded from this definition, as have exchanges of unpaid work. My paper is therefore prepared with this omission in mind.
Introduction
“In many developing countries, unofficial economic activity (that conducted by unregistered firms or by registered firms but hidden from taxation) accounts to between a third and a half of the total. This share declines sharply as the economy develops. Despite the sheer magnitude of this unofficial activity, little is understood about its role in the process of economic development, and in particular about how important “officializing” these hidden resources might be for economic growth...
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