Elgin, Ceyhun; Uras, Burak R. - In: SERIEs - Journal of the Spanish Economic Association 4 (2013) 3, pp. 309-331
model in which an exogenous variation in the size of the informal sector creates two effects on financial development …. Specifically, informal sector harms financial development through increasing financial repression due to tax evasion. However, on … the other hand, increasing informal sector size facilitates financial development through easing the capacity constraint …