A Comparison of the Characteristics of Informal Economy between Developing and Developed Countries and the Experience and Reference of China: A Case Study of Malaysia and Singapore

Abstract

As China continues to urbanise, the size of the informal economy in the country is also increasing, creating numerous governance issues. This thesis explores the differences between developing and developed countries by comparing the characteristics of the informal economy in Malaysia and Singapore. A literature study was used to analyze the size and characteristics of the informal economy in the two countries. It is found that despite the commonalities, there are significant differences between the two countries' informal economies in terms of development stages and policy implications. This study provides valuable experience and lessons for the governance of the informal economy in China, emphasising the impact of government policies and socio-cultural factors on the informal economy, and it also provides important insights into the effective governance of the informal economy in developing countries.