Informal Trade as a Predominant Factor in the Local Economy of Ambato, Ecuador

Abstract:

This study sought to determine the effect of informal trade on traders in formal markets and on the local economy of Ambato, Ecuador. The social and economic impact on the prevalence of informal trade is notable; the market is comprised of people who face unemployment, the economic crisis and lack of opportunity and so choose this extralegal form of work. The aim of this study was to survey formal traders to identify how the presence of informal traders has affected the number of sales of perishable products in the city of Ambato. This was driven by the question of whether the number of informal traders causes a reduction in the formal sales of these products in the study area. A qualitative and quantitative data analysis approach examining economic figures and socioeconomic factors is used. The surveyed sample comprises 326 formal traders. The results of a questionnaire show that the observed increase in informal trade is largely due to the economic crisis, that those who are involved in this activity

Año de publicación:

2019

Keywords:

Fuente:

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