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The Economic development role of the urban informal sector in developing countries : an inflow outflow analysis

In addition to having argued the rationale of informal sector economics in developing countries, this paper claims to have developed one of the very few comprehensive models on the sector. A classical-input output approach to urban economic development suggested two reasons why an urban community is poor : 1) inadequate inflow of money into the urban community, and 2) too much outflow of money from the urban community. Based upon this approach, this paper makes suggestions as to how the resources of the informal sector in developing countries can be mobilized to increase the inflow of money in…