GLIMS Journal of Management Review and Transformation
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Ashraf Rehman1 
1The Green Institute, Dimapur, Nagaland, India
Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.
The study attempts to draw on a commentary approach to comprehensively document the extensive theoretical landscape of the informal economy, drawing from an International Monetary Fund Report in 2021 and a vast body of existing literature. With over 60% of the global labour force participating in the informal economy, its multifaceted nature, encompassing a wide array of small-scale economic activities, presents a formidable challenge for economists and policymakers. Within this study, we critically examine and synthesise the prevailing theories, including the dualistic theory, Inclusive Theory, Structuralism, Neo-Liberalism, and Modernisation Theory, each offering distinct perspectives on the informal economy’s intricacies. This article underscores the vital role of comprehensive literature reviews in advancing our understanding of complex economic phenomena, thereby contributing to the ongoing discourse on the informal economy and shedding light on its multifarious theoretical foundations and diverse definitions.
informal economy, dualistic theory, neo-liberalism, informality theories, shadow economy, inclusive theory
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