Two Case Studies on the Informal Economy

Sugata Marjit and Saibal Kar

in The Outsiders

Published in print March 2011 | ISBN: 9780198071495
Published online September 2012 | e-ISBN: 9780199081257 | DOI:
Two Case Studies on the Informal Economy

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This chapter discusses two case studies—Dharavi in Mumbai and Surat in Gujarat. In particular, it uses the case studies to discuss situations where international trade policies and their effects on domestic factor prices turn out to be of critical importance for the existence of informal activities. It shows that the recent transformation of the slums in Dharavi in Mumbai through massive real estate development is counter-productive to a flourishing informal segment of leather products, though the general state of the unorganized leather industry has worsened somewhat over the recent years. In contrast, the paper work industry in Surat is benefiting from the spoils of globalization.

Keywords: international trade; trade policy; domestic factor prices; informal sector; real estate development; Dharavi; leather products industry; Surat; paper work industry

Chapter.  5169 words. 

Subjects: Economic Development and Growth

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