The Informal Sector
The supply (backward linkages) and demand (forward linkages) conditions of informal sector enterprises can best be studied using the framework of analysis provided by the 'industrial organization analysis'1. This framework identifies
the following criteria which have to be studied when the urban informal sector is studied as an 'economic unit'
Supply and Demand Linkages of
Informal Sector Enterprises
- 1Industrial organization analyses is a menu or taxonomy of concepts such as allocative efficiency (maximum advantage for both customers and suppliers); dynamic efficiency (including dynamic aspects such as changing customers' preferences or technological progress); X-inefficiency (taking into consideration the efficiency with which firms make use of available technology and the rate at which they innovate); and other concepts.