Galbraith’s Theory of Social Balance and Informal Economy: Evidence from Global Data
Journal of Economic Issues, cilt.60, sa.3, ss.765-776, 2026 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 60 Sayı: 3
- Basım Tarihi: 2026
- Doi Numarası: 10.1080/00213624.2026.2702090
- Dergi Adı: Journal of Economic Issues
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, Periodicals Index Online, ABI/INFORM, EconLit, Political Science Complete, Public Affairs Index, DIALNET, Political Science Abstract (IPSA), Social Sciences Abstracts, Social Science Premium Collection (ProQuest), Business Source Ultimate (EBSCO), Humanities Source Ultimate (EBSCO), Sociology Source Ultimate (EBSCO)
- Sayfa Sayıları: ss.765-776
- Anahtar Kelimeler: Galbraith, theory of social balance, informal sector, informal economy, B31, E26, H40
- Boğaziçi Üniversitesi Adresli: Evet
Özet
Abstract: This study applies John Kenneth Galbraith’s theory of social balance to the informal economy. Galbraith highlights the critical need for robust public investments in education, healthcare, infrastructure, and social security to maintain a balance between private and public sectors. The unchecked dominance of private interests, coupled with inadequate public services, exacerbates social inequality and leads to higher informalization. Utilizing global data from 156 countries for 1990–2020, this article employs panel data methods to examine the relationship between social imbalance and informality. It hypothesizes a U-shaped correlation, where both insufficient and excessive public spending relative to private spending promote informal economic activity. The findings confirm the existence of this relationship, highlighting the importance of achieving an effective social balance to minimize informality, reduce inequality, and promote inclusive economic growth.