摘要：This study investigates the dynamic relationship between informal economy and unemployment in Tunisia during the period of 1980–2009. Two different methodologies have been employed to test the Granger non-causality: the linear causality approach of Toda– Yamamoto (1995) and the non-linear causality method of Kyrtsou-Labys (2006). Both tests have yielded a strong evidence for unidirectional causality running from the unemployment to the informal economy. The empirical results show that high levels of unemployment lead to enhanced economic activities in the informal sector. The policy implication is that any measures aiming at a reduction of the informal economy without tackling the principal problem of unemployment would be counterproductive.
