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Informal Economy and Productivity Growth

Businesses operating in the informal economy are typically unproductive and stagnant. Their presence, despite the various forms and situations across countries, may hinder aggregate productivity growth and lock an economy into a low economic development stage. The expansion of informal business activities poses a critical concern for long-term economic development and an increasing competitive pressure on the performance and innovation of formal firms.

Against this background, the Asian Productivity Organization (APO) conducts research on “Informal Economy and Productivity Growth”. This study analyzes the situation and estimates the impact of the informal economy on productivity in APO members. Recommendations for policies to reduce the vulnerability of workers in informal businesses, mitigate the negative impact of informal business on formal sectors, and enhance aggregate productivity growth will be made. EU-ERA at THE FUTURE has been tasked with examining the influence of the informal sector on productivity in the Malaysian context. In total there are 11 participating countries involved in this project including Malaysia.

For details, please contact our economist:

Assoc. Prof. Dr. Mohd Yusof Saari
Chief Economist

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Selected Projects

Informal Economy and Productivity Growth

New Dynamics of Global Supply Chains and Implications for Productivity

Premature Deindustrialization and Productivity Performance

New Wage Model for Building Sustainable Business and Workforce

Penyediaan Kajian Pelan Tindakan Khusus
Sembilan 2021-2025 (RPNS 2021-2025)

Study on Measures and Strategies to Increase Labor Compensation

A study to develop an economy-wide model for refinement of medium-term labor market forecasting and evidence-based policy formulation

Jadual Input-Output Negeri & Rancangan Pembangunan Negeri Sembilan (RPNS)

Impacts and Consequences of Unemployment Insurance

State Productivity Assessment

Effects of Labor Market Conditions on Shadow Economy in Malaysia

Untapped Economically Active Labor Force to Promote Economic Growth and Productivity

The Need for Escaping the Wage Curse

Meniti Titian Hidup: Memahami Impak Badai Inflasi

Job Market Monitor: Climbing the Job Ladder among Graduates

Development of Leading Indicators of Unemployment Rates