
Does informal economy reduce poverty? Evidence from Morocco
Othmane BOURHABA and Mama HAMIMIDA – Hassan II University Casablanca, Morocco Abstract In Morocco, similarly to other developing countries, the informal economy represents a very large and growing share of production and employment. This paper aims to identify and analyse the relation between informality and the phenomenon of poverty using an empirical approach. This empirical analysis is based on a static and dynamic approach (GMM) by using panel data. The results reveal that the empirical analysis leads to highlight the existence of a positive effect of the informal sector on the increase in the poverty rate in Morocco during the last […]