The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review

The informal sector is an integral part of several sub-Saharan African (SSA) countries and plays a key role in the economic growth of these countries. This article used a comparative systematic review to explore the factors that act as drivers to informality in South Africa (SA) and Nigeria, the cha...

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Main Authors: Ernest Etim, Olawande Daramola
Format: Article
Language:English
Published: Elsevier 2020-11-01
Series:Journal of Open Innovation: Technology, Market and Complexity
Subjects:
Online Access:https://www.mdpi.com/2199-8531/6/4/134
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author Ernest Etim
Olawande Daramola
author_facet Ernest Etim
Olawande Daramola
author_sort Ernest Etim
collection DOAJ
description The informal sector is an integral part of several sub-Saharan African (SSA) countries and plays a key role in the economic growth of these countries. This article used a comparative systematic review to explore the factors that act as drivers to informality in South Africa (SA) and Nigeria, the challenges that impede the growth dynamics of the informal sector, the dominant subsectors, and policy initiatives targeting informal sector providers. A systematic search of Google Scholar, Scopus, ResearchGate was performed together with secondary data collated from grey literature. Using Boolean string search protocols facilitated the elucidation of research questions (RQs) raised in this study. An inclusion and exclusion criteria became necessary for rigour, comprehensiveness and limitation of publication bias. The data collated from thirty-one (31) primary studies (17 for SA and 14 for Nigeria) revealed that unemployment, income disparity among citizens, excessive tax burdens, excessive bureaucratic hurdles from government, inflationary tendencies, poor corruption control, GDP per capita, and lack of social protection survival tendencies all act as drivers to the informal sector in SA and Nigeria. Several challenges are given for both economies and policy incentives that might help sustain and improve the informal sector in these two countries.
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spelling doaj.art-a345880fbd6345628b4ea6605d56ee682023-10-02T06:34:41ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312020-11-01613413410.3390/joitmc6040134The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic ReviewErnest Etim0Olawande Daramola1Department of Information Technology, Cape Peninsula University of Technology, P.O. Box 652, South AfricaDepartment of Information Technology, Cape Peninsula University of Technology, P.O. Box 652, South AfricaThe informal sector is an integral part of several sub-Saharan African (SSA) countries and plays a key role in the economic growth of these countries. This article used a comparative systematic review to explore the factors that act as drivers to informality in South Africa (SA) and Nigeria, the challenges that impede the growth dynamics of the informal sector, the dominant subsectors, and policy initiatives targeting informal sector providers. A systematic search of Google Scholar, Scopus, ResearchGate was performed together with secondary data collated from grey literature. Using Boolean string search protocols facilitated the elucidation of research questions (RQs) raised in this study. An inclusion and exclusion criteria became necessary for rigour, comprehensiveness and limitation of publication bias. The data collated from thirty-one (31) primary studies (17 for SA and 14 for Nigeria) revealed that unemployment, income disparity among citizens, excessive tax burdens, excessive bureaucratic hurdles from government, inflationary tendencies, poor corruption control, GDP per capita, and lack of social protection survival tendencies all act as drivers to the informal sector in SA and Nigeria. Several challenges are given for both economies and policy incentives that might help sustain and improve the informal sector in these two countries.https://www.mdpi.com/2199-8531/6/4/134informal economysystematic revieweconomic growtheconomic developmentopen innovationSouth Africa
spellingShingle Ernest Etim
Olawande Daramola
The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review
Journal of Open Innovation: Technology, Market and Complexity
informal economy
systematic review
economic growth
economic development
open innovation
South Africa
title The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review
title_full The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review
title_fullStr The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review
title_full_unstemmed The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review
title_short The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review
title_sort informal sector and economic growth of south africa and nigeria a comparative systematic review
topic informal economy
systematic review
economic growth
economic development
open innovation
South Africa
url https://www.mdpi.com/2199-8531/6/4/134
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