Does globalisation affect informal employment in low and lower middle income countries?

This thesis is submitted in a partial fulfillment of the requirements for the degree of Bachelor of Social Sciences in Economics, 2017.Cataloged from PDF version of thesis.Includes bibliographical references (pages 22-25).This thesis examines whether increased globalisation causes rise in informal employment for low and lower middle income countries. Previous studies have suggested that increased globalisation does play a significant role in the level of informal employment in an economy. This thesis employs a selection of 20 low income and lower middle income countries for the period of 1990 to 2014. To achieve this, the research employs a random effects panel regression analysis by clustering over countries and using trade-based indicators for globalisation. The empirical analysis finds that while trade does exhibit a positive and significant relationship with informal employment, foreign direct investment exhibits negative and insignificant relationship to informality and trade restrictions exhibit a positive but insignificant relationship with informal employment.Samirah Bint ZulfiqarB. in Economic