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Reducing the Size of the Informal Economy in Latin America: A Step Towards Increasing Competitiveness
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Author(s): Carlos Salcedo-Perez (EAN University, Colombia), Andres Carvajal-Contreras (EAN University, Colombia)and Dario Rondón-González (EAN University, Colombia)
Copyright: 2020
Pages: 23
Source title:
Handbook of Research on Increasing the Competitiveness of SMEs
Source Author(s)/Editor(s): Rafael Perez-Uribe (Universidad de la Salle, Colombia), David Ocampo-Guzman (EAN University, Colombia), Carlos Salcedo-Perez (EAN University, Colombia), Lorena Piñeiro-Cortes (EAN University, Colombia)and Maria Del Pilar Ramirez-Salazar (EAN University, Colombia)
DOI: 10.4018/978-1-5225-9425-3.ch005
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Abstract
Authors analyze the current situation of competitiveness in the region and in selected countries, using available data. They diagnose the level of informal economy in the region. The chapter articulates how informality affects the competitive capability of a country. Recommendations are made on how to tackle informality, based on the current literature on the topic, previous experiences from other countries, and the authors' analysis. This chapter considers the importance of Colombia, Peru, and Mexico to Latin America in terms of economic size, population, and territory. Besides, these countries, along with Chile, form the Alianza del Pacifico (Pacific Alliance), a group of countries that constitutes a basic form of economic integration. Chile is excluded from this chapter since it shows significantly lower levels of informality than the other three alliance members.
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