The informal economy is a vast and complex landscape with profound implications for sustainable development across the Global South. Our understanding of this sector continues to evolve but remains incomplete.

This report presents an annotated bibliography and synthesis of current research on the informal economy, examining the impact of different schools of thought regarding the topic. In particular, it assesses a small but emerging literature around the implications of the sector’s heterogeneity for promoting inclusive and environmentally sustainable economic transformation. It identifies critical gaps in the literature, particularly the need for more comparative policy analysis and in-depth case studies to provide a more context-specific evidence base on the informal economy across the Global South.

Ultimately, this report offers valuable insights to guide future research and policy dialogues on harnessing the informal economy's potential for inclusive and green development.

Report by the Overseas Development Institute