{
  "title": "Informality and Growth in Madagascar: Republic of Madagascar",
  "publication": "Selected Issues Papers, June 5, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2023/06/05/informality-and-growth-in-madagascar-republic-of-madagascar-534097",
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  "summary": "This chapter investigates the link between informality and growth in Madagascar and aims for a better understanding of the informal sector. It provides an analysis of the characteristics of informal production units and informal employment.",
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    {
      "heading": "Summary",
      "content": "- Chapter investigates the link between informality and growth in Madagascar and aims for a better understanding of the informal sector.\n- Provides an analysis of the characteristics of informal production units and informal employment.\n- Publication date: June 5, 2023.\n- Pages: 17.\n- DOI: https://doi.org/10.5089/9798400244827.018\n- Series: Selected Issues Paper No. 2023/036\n- ISBN: 9798400244827"
    },
    {
      "heading": "Key findings",
      "content": "- Informality is a key feature of economic activity in Madagascar.\n- Informal production units are the main driver of employment with a deep concentration around self-employment.\n- Informality is associated with a lack of awareness of administrative procedures and the complexity and cost of tax and regulatory measures.\n- The informal sector’s Total Factor Productivity (TFP) growth is more stable and higher on average than the formal sector TFP."
    },
    {
      "heading": "Characteristics of informal production units and employment",
      "content": "- Informal production units dominate employment.\n- Employment in the informal sector is deeply concentrated around self-employment.\n- Administrative awareness deficits among participants in informal activity are a central characteristic.\n- Tax and regulatory complexity and costs are linked to the decision to remain informal."
    },
    {
      "heading": "Productivity analysis",
      "content": "- The informal sector’s Total Factor Productivity (TFP) growth:\n  - Is more stable than formal sector TFP growth.\n  - Is higher on average than formal sector TFP."
    },
    {
      "heading": "Policy implications (implied by findings)",
      "content": "- Reducing the complexity and cost of tax and regulatory measures could address drivers of informality.\n- Improving awareness of administrative procedures may encourage formalization.\n- Policies targeting the productivity dynamics of informal production units could leverage the sector’s relatively stable and higher-average TFP growth.\n\nSource: Informality and Growth in Madagascar: Republic of Madagascar, Selected Issues Papers (June 5, 2023).\n\n---\n\n Content in this bundle\n\n- Sipea2023036\n  - Sipea2023036 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2023036 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2023/06/05/informality-and-growth-in-madagascar-republic-of-madagascar-534097"
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    "Authors: Ghislain Afavi, Coffi Agossou, Mokhtar Benlamine, Ialy Rasoamanana, Nombàna Razafinisoa, Veronique Salins",
    "Published: June 5, 2023",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798400244827.018",
    "Chapter investigates the link between informality and growth in Madagascar and aims for a better understanding of the informal sector.",
    "Provides an analysis of the characteristics of informal production units and informal employment.",
    "Publication date: June 5, 2023.",
    "Pages: 17.",
    "DOI: https://doi.org/10.5089/9798400244827.018",
    "Series: Selected Issues Paper No. 2023/036",
    "ISBN: 9798400244827",
    "Informality is a key feature of economic activity in Madagascar.",
    "Informal production units are the main driver of employment with a deep concentration around self-employment.",
    "Informality is associated with a lack of awareness of administrative procedures and the complexity and cost of tax and regulatory measures.",
    "The informal sector’s Total Factor Productivity (TFP) growth is more stable and higher on average than the formal sector TFP.",
    "Informal production units dominate employment.",
    "Employment in the informal sector is deeply concentrated around self-employment.",
    "Administrative awareness deficits among participants in informal activity are a central characteristic.",
    "Tax and regulatory complexity and costs are linked to the decision to remain informal.",
    "The informal sector’s Total Factor Productivity (TFP) growth:",
    "Reducing the complexity and cost of tax and regulatory measures could address drivers of informality.",
    "Improving awareness of administrative procedures may encourage formalization.",
    "Policies targeting the productivity dynamics of informal production units could leverage the sector’s relatively stable and higher-average TFP growth.",
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