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Research on Raising Informal-sector Productivity
Study the effects of the informal sector on productivity in APO member economies; identify trends in and determinants of informal-sector productivity and impacts on national economies; and examine policy interventions to manage the informal sector to improve productivity growth and achieve better socioeconomic outcomes.
For more details, the PN and Implementation Procedures.
Informal-sector employment shares range from over 80% in some developing APO members, including numerous women, to 26% in the ROK (ILO data). Informal-sector enterprises suffer from low economies of scale and lack of access to finance, undermining their productivity. Countries with larger informal sectors fare less well in inclusive development with lower productivity, fiscal resources, financial deepening, capital accumulation, institutional quality, empowerment of women, and social security coverage. However, informal sectors encourage entrepreneurship and digital technology use, providing secondary jobs in times of high inflation.
While the APO publication “Issues and Challenges on the Productivity Performance of the Informal Sector in Selected APO Members” (2023) provides descriptive case studies of informal sectors in developing members, the objective of this research is integrated multicountry analysis to test, measure, and provide insights on inclusive growth.
The APO will select a research institution with extensive, specialized expertise in multicountry analysis of informal-sector productivity as demonstrated through publications and international research.
Measuring informal-sector productivity in APO members and reference economies; Multicountry analysis of informal-sector productivity; Characteristics of informality; Determinants of informality; Effects of informality on inclusive development; and Policy recommendations.
Download: Annexes.
A prospective institution requiring any clarification of this document, or the process itself, shall submit its queries in writing only to the following email addresses:
Multicountry Program Division 2
Asian Productivity Organization (APO Secretariat)
1-24-1 Hongo, Bunkyo, Tokyo 113-0033, Japan
Email: rminamoto@apo-tokyo.org and asato@apo-tokyo.org