Estimating the informal economy in Algeria from 1980 to 2019 : currency demand approach

Abstract EN

This study aims to estimate the size and development of the informal economy using the currency demand approach from 1980 to 2019 in Algeria.

The investigation revealed many results such as the average of Algerian informal economy over the study period is around 21% of the official GDP.

the tax burden is an important determinant of IE.

In the last twenty years, the tax policies applied by the Algerian government did not reduce the upward evolution of IE.

Thus a re-evaluation of the tax system is needed.