Non-compliant behaviors and institutions in Algeria : comparison between global and local institutional overview

Abstract EN

The informal economy is a social and economic phenomenon that one cannot ignore; especially with its effects on the official economy.

Consequently, policy makers and academicians have made concerted efforts to estimate its size, and to determine its main causes.

The emphasis of this paper will be on the impact of both formal and informal institutions on economic outcomes, by conducting a field survey in the economic sector based on the economic enterprises in different regions of the west of Algeria.

Our results basing on the PLS-SEM modeling show that trust in public institutions and the persistence of the informal institutions including the rules of old regime, in addition to the adjustment to formal institutions that affect the economic agents to go underground.