An Integrated Policy Framework for the Informal Economy: Based on Comparative Drivers and Dynamics Across ASEAN-5
Year: 2026
Type: preprint
Abstract: The informal economy remains an important source of employment across ASEAN-5 economies despite economic growth and formalization initiatives. This study examines informal economic activity in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam through bibliometric mapping and comparative qualitative analysis, drawing on PLS-SEM findings reported by Ramdani Salim et al. (2026) for panel data covering 2015–2022. The reported results indicate a negative association between institutional quality and informality (β = −0.378; p = 0.015), alongside positive associations for social protection, labor market policies, and economic growth. These patterns are consistent with possible coverage gaps and regulatory constraints, but do not establish their causal mechanisms. The reported technological mediation result was not statistically significant (β = 0.011; p = 0.335), providing no sufficient evidence of mediation in that model. The comparative analysis identifies differences in institutional development, labor market structures, social protection systems, and digital governance across the five countries. Its contribution is to interpret these findings within national policy contexts and develop an integrated framework combining institutional strengthening, inclusive social protection, adaptive labor regulation, and digital governance. The framework offers policy directions for inclusive and sustainable development, rather than evidence of the effectiveness of individual interventions.
Source: Preprints.org
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225116102