• Muhammed Yusuf ÖZER Kadikoy Anatolian High School, Turkey


In this paper, I investigate the relationship between informal sector size and various institutional quality variables: government stability, external conflict, internal conflict, corruption control, military influence over politics, religious tensions, ethnic tensions, law-and-order, democratic quality, and bureaucratic accountability. To this end, I use annual cross-country panel data covering 130 countries from 1990 to 2018. Having conducted a correlation analysis, the size of informal economy and institutional quality indicators are inversely linked. The most crucial institutional quality determinants are law-and-order (-0.53), bureaucratic quality (-0.51), military in politics (-0.45), corruption control (-0.42), and internal conflict (-0.35).


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How to Cite
ÖZER, Muhammed Yusuf. INFORMAL SECTOR AND INSTITUTIONS. Theoretical and Practical Research in Economic Fields, [S.l.], v. 13, n. 2, p. 180 – 187, dec. 2022. ISSN 2068-7710. Available at: <>. Date accessed: 01 oct. 2023. doi: