Size and Measurement of the Informal Economy in 110 Countries around the World

Abstract: Estimates of the size of the informal economy in 110 developing, transition and OECD countries are presented. The average size of the informal economy, as a percent of official GNI in the year 2000, in developing countries is 41%, in transition countries 38% and in OECD countries 18%. A large burden of taxation and social security contributions combined with government regula tions are the main determinants of the size of the informal economy.