The paper investigates whether the existing system creates disincentives for formalization in terms of reducing disposable incomes and increasing poverty and inequality, and whether a hypothetical tax reform would be able to reduce the opportunity costs of formalization for informal workers, improve distributional outcomes, and increase fiscal revenues.
Moreover, the study documents meaningful heterogeneity across Sub-Saharan Africa subregions, with the Southern region being the only subregion to have witnessed deindustrialization.
However, this deindustrialization of the Southern subregion does not appear to be occurring prematurely.
See Less - Manufacturing in Structural Change in Africa (English) This paper investigates the scale, causes, and timing of significant episodes of industrialization and deindustrialization in Sub-Saharan Africa.
Recent studies have argued that the turning point of manufacturing output and employment shares tends to occur prematurely in this region.