The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe

This study investigated the relationship between the informal economy and sustainable development, focussing on how the shadow economy influenced the achievement of the 17 Sustainable Development Goals (SDGs) formulated in the 2030 Agenda in Europe. The research used data extracted from the Euros...

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Main Authors: Roberto Dell’Anno, Adriana AnaMaria Davidescu, Eduard Mihai Manta
Format: Article
Language:English
Published: Editura ASE 2024-11-01
Series:Amfiteatru Economic
Subjects:
Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3361.pdf
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author Roberto Dell’Anno
Adriana AnaMaria Davidescu
Eduard Mihai Manta
author_facet Roberto Dell’Anno
Adriana AnaMaria Davidescu
Eduard Mihai Manta
author_sort Roberto Dell’Anno
collection DOAJ
description This study investigated the relationship between the informal economy and sustainable development, focussing on how the shadow economy influenced the achievement of the 17 Sustainable Development Goals (SDGs) formulated in the 2030 Agenda in Europe. The research used data extracted from the Eurostat and Schneider (2022) and analysed sustainable development performance in 36 European countries in the years 2010 and 2022. The methodology involved applying partial least squares (PLS) regression to construct a synthetic indicator of sustainable development, considering two scenarios: one that excluded and another that included the size of the informal economy. The results highlighted that while the informal economy contributed to immediate poverty alleviation and short-term economic resilience, it created challenges for long-term sustainability in areas such as formal employment, social inclusion, and environmental regulation. The findings highlighted the need for stronger policies to integrate the informal sector into the formal framework, thus improving overall sustainability. The study made an original contribution by addressing the dual role of the informal economy in sustainable development, offering new perspectives for formulating more effective policies in the context of the 2030 Agenda.
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spelling doaj-art-59a7a44e4c774aa1909c9ebe246cc48a2025-08-20T03:31:16ZengEditura ASEAmfiteatru Economic1582-91462247-91042024-11-0126No. Special 181108112510.24818/EA/2024/S18/1108 The Role of the Informal Economy in Achieving the Sustainable Development Goals in EuropeRoberto Dell’Anno0https://orcid.org/0000-0001-7441-8328Adriana AnaMaria Davidescu 1https://orcid.org/0000-0002-9847-1200 Eduard Mihai Manta2https://orcid.org/0000-0001-9693-8607Department of Economics and Statistics and CELPE, University of Salerno, Italy Bucharest University of Economic Studies, RomaniaNational Scientific Research Institute for Labour and Social Protection, RomaniaThis study investigated the relationship between the informal economy and sustainable development, focussing on how the shadow economy influenced the achievement of the 17 Sustainable Development Goals (SDGs) formulated in the 2030 Agenda in Europe. The research used data extracted from the Eurostat and Schneider (2022) and analysed sustainable development performance in 36 European countries in the years 2010 and 2022. The methodology involved applying partial least squares (PLS) regression to construct a synthetic indicator of sustainable development, considering two scenarios: one that excluded and another that included the size of the informal economy. The results highlighted that while the informal economy contributed to immediate poverty alleviation and short-term economic resilience, it created challenges for long-term sustainability in areas such as formal employment, social inclusion, and environmental regulation. The findings highlighted the need for stronger policies to integrate the informal sector into the formal framework, thus improving overall sustainability. The study made an original contribution by addressing the dual role of the informal economy in sustainable development, offering new perspectives for formulating more effective policies in the context of the 2030 Agenda. https://www.amfiteatrueconomic.ro/temp/Article_3361.pdfsustainable developmentsdginformal economycomposite indicatorspls
spellingShingle Roberto Dell’Anno
Adriana AnaMaria Davidescu
Eduard Mihai Manta
The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe
Amfiteatru Economic
sustainable development
sdg
informal economy
composite indicators
pls
title The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe
title_full The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe
title_fullStr The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe
title_full_unstemmed The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe
title_short The Role of the Informal Economy in Achieving the Sustainable Development Goals in Europe
title_sort role of the informal economy in achieving the sustainable development goals in europe
topic sustainable development
sdg
informal economy
composite indicators
pls
url https://www.amfiteatrueconomic.ro/temp/Article_3361.pdf
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