What is it about?

The paper review the literature studying the possible relationship between the level of informality and financial development. The empirical evidence finds that higher levels of financial development are associated with higher levels of informality (underground economy)

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Why is it important?

The paper helps in explaining the possible causal linkages between informality and financial development and provides policy implications.


The paper provides ideas for further research on both informality and financial development. Two important issues, here interrelated.

Salvatore Capasso
Institute for Studies on the Mediterranean, ISMed-CNR

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This page is a summary of: Informality and financial development: A literature review, Manchester School, June 2022, Wiley, DOI: 10.1111/manc.12417.
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