Abstract

Informal economy (IE) is second only to the US economy in size; however, the role of ICT in IE remains largely unexplored. In this study, we conduct an empirical analysis of the role of ICT in IE growth. With PLS analysis involving more than 100 nations, we show that ICT products and software piracy may play important roles in IE growth, that impact of ICT and other determinants on IE growth remains largely unchanged over years; however the impact of ICT- and other determinants on IE growth for developing and developed nations may not be the same.

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The Impact of Information and Communication Technologies on Informal Economy Growth: A National-Level Study

Informal economy (IE) is second only to the US economy in size; however, the role of ICT in IE remains largely unexplored. In this study, we conduct an empirical analysis of the role of ICT in IE growth. With PLS analysis involving more than 100 nations, we show that ICT products and software piracy may play important roles in IE growth, that impact of ICT and other determinants on IE growth remains largely unchanged over years; however the impact of ICT- and other determinants on IE growth for developing and developed nations may not be the same.