Toward a Research Agenda on the Informal Economy

Executive Overview Informal firms operate in a shadowy zone where they produce legal goods and services but do not follow legal requirements to register with government authorities. The collective economic activity involving informal firms, their suppliers, and their customers constitutes the informal economy. Although the informal economy accounts for a significant percentage of total commerce in many countries, there has been little management research about it. We outline some key issues and questions involving the informal economy that management researchers could help to answer, forming a potential research agenda in the process.