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Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research

Joshi, Anuradha, Prichard, Wilson, Heady, Christopher J (2014) Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research. The Journal of Development Studies, 50 (10). pp. 1325-1347. ISSN 0022-0388. E-ISSN 1743-9140. (doi:10.1080/00220388.2014.940910) (KAR id:54598)


This paper reviews the literature on taxation of the informal economy, taking stock of key debates

and drawing attention to recent innovations. Conventionally, the debate on whether to tax has frequently focused

on the limited revenue potential, high cost of collection, and potentially adverse impact on small firms. Recent

arguments have increasingly emphasised the more indirect benefits of informal taxation in relation to economic

growth, broader tax compliance, and governance. More research is needed, we argue, into the relevant costs and

benefits for all, including quasi-voluntary compliance, political and administrative incentives for reform, and

citizen-state bargaining over taxation.

Item Type: Article
DOI/Identification number: 10.1080/00220388.2014.940910
Subjects: H Social Sciences > HJ Public Finance
J Political Science
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Christopher Heady
Date Deposited: 22 Mar 2016 12:55 UTC
Last Modified: 10 Dec 2022 06:22 UTC
Resource URI: (The current URI for this page, for reference purposes)

University of Kent Author Information

Heady, Christopher J.

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