Does globalisation affect informal employment in low and lower middle income countries?
AuthorZulfiqar, Samirah Bint
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This thesis examines whether increased globalisation causes rise in informal employment for low and lower middle income countries. Previous studies have suggested that increased globalisation does play a significant role in the level of informal employment in an economy. This thesis employs a selection of 20 low income and lower middle income countries for the period of 1990 to 2014. To achieve this, the research employs a random effects panel regression analysis by clustering over countries and using trade-based indicators for globalisation. The empirical analysis finds that while trade does exhibit a positive and significant relationship with informal employment, foreign direct investment exhibits negative and insignificant relationship to informality and trade restrictions exhibit a positive but insignificant relationship with informal employment.