Effect of Ethnic Fractionalisation on Informality in Sub-Saharan Africa.

dc.contributor.authorAbdulkareem Abdulhafis Olagunju
dc.date.accessioned2025-02-11T09:34:22Z
dc.date.available2025-02-11T09:34:22Z
dc.date.issued2024
dc.description.abstractThis study examined the effect of ethnic fractionalisation on informality in Sub-Saharan Africa, utilising two measures of informality (viz: Dynamic General Equilibrium (DGE) and Multiple Indicator Multiple Cause (MIMIC)) and employing a theoretical proposition on ethnic fractionalisation and economic dualism theory as the theoretical framework. Conducting a unit root test and then using the Kao panel test for the cointegration of data from 1993 to 2021, the paper aimed to establish a long-run relationship among the variables. Panel ARDL estimation technique was then utilised to analyse the data. Findings revealed a positive effect of ethnic fractionalisation on the informal sector, in line with the proposition advanced in the paper. Also, the control variables, comprising economic development, unemployment, educational attainment, and World governance combined indicators, were all found to have the expected effects on informality. The study concluded with recommendations for policymakers to formulate and implement policies aimed at reducing the rather undesirable effect of ethnic fractionalisation on the size of the informal economy and to also check the extent of informality effectively through other targeted interventions.
dc.identifier.citationAbdulkareem A. O., (2024): Effect of Ethnic Fractionalisation on Informality in Sub-Saharan Africa. Al-Hikmah Journal of Economics. 5 (1): Print ISSN: 2734-2670, Published by Al-Hikmah University, Ilorin. Available on Online at https://alhikmahuniversity.edu.ng/centralJournal/single_pub.php?id=925
dc.identifier.issn2734-2670
dc.identifier.urihttps://kwasuspace.kwasu.edu.ng/handle/123456789/4298
dc.language.isoen
dc.publisherAl-Hikmah Journal of Economics
dc.titleEffect of Ethnic Fractionalisation on Informality in Sub-Saharan Africa.
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