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Coups d’état and the informal economy
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DOI:10.1016/j.worlddev.2026.107477.png)
Abstract
En 中文
• We analyze the effect of coups d’état on the size of the informal economy in developing countries. • Coups d’état expand the informal economy in developing countries. • This result is highly robust. • The detrimental effect of coups d’état holds for both successful and failed coups and varies across key structural factors. • Higher external debt, lower gross fixed capital formation, and the erosion of democracy constitute the main transmission channels.
Keywords:
E26
H12
H56
O11
O17
Coups d’état
Informal economy
Developing countries
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