Home > Economics, Development Studies > Vol 11 No 1 June 2023 Abstract 9
Impact of Capital-Intensive Informal Sector Policy in Burkina Faso: A Computable General Equilibrium Analysis
Jean Abel Traoré, PhD; Idrissa Mohamed Ouedraogo, PhD

Abstract
Since the 1990s, intensive economic reforms have been implemented in Burkina Faso to increase capital intensity in the informal sector. This paper uses a computable general equilibrium (CGE) model to explore the impact of these reforms on production, employment, and income through the inter-linkages lens between the informal, the formal and the agricultural sectors. We find that a gradual increase in the capital stock in the informal sector mainly leads to paradoxical negative spillovers on sector a productions, on employment particularly in the formal sector, while incomes improve slightly only for the farmers and the own account workers.

Full Text: PDF     DOI: 10.15640/jeds.v11n1a9