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ABSTRACT
The informal market employs a greater proportion of the labour force in developing countries compare to the formal market. This market or sector is usually assumed to be anti-developmental to communities in which it exists. This is because, part of its income, though latent, may not be captured due to its irregular and unstructured nature. This study was therefore carried out to investigate the effect of this uncaptured informal market income on revenue generation at the community level. Specifically, the study sought to ascertain if captured informal market income could increase the standard of living of community residents and if uncaptured informal market income affects communal development. To determine if uncaptured informal market income affects a community’s economy was also a specific objective of this study. The study adopted a survey research design where questionnaire were administered to fifty respondents (informal market operators). These data were analysed and hypotheses were tested using chi-square (x2) and product moment correlation. The study revealed that government at the grassroot level is not adequately capturing income from the informal market, again, the level of community development is not dependent on the captured informal market income. Besides, a significant ant positive relationship exists between the uncaptured informal market and a community’s economy. It was therefore recommended that government should build a more effective informal strategy to tax the informal market. Staff of the internally revenue service should be receiving regular training to enhance to efficiency effectiveness.
TABLE OF CONTENTS
Title page - - - - - - - - i
Declaration - - - - - - - - ii
Certification - - - - - - - - iii
Dedication - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract- - - - - - - - - vii
Table of Contents - - - - - - - viii
List of Tables - - - - - - - - xi
CHAPTER ONE - INTRODUCTION
1.0 Background of the Study - - - - - 1
1.1 Statement of the Problem - - - - - 4
1.2 Objectives of the Study - - - - - 5
1.3 Research Questions- - - - - - - 6
1.4 Statement of Hypotheses- - - - - - 6
1.5 Significance of the Study - - - - - 7
1.6 Scope and Limitation of the Study- - - - - 7
1.7 Organization of the Study- - - - - - 8
CHAPTER TWO – LITERATURE REVIEW
2.0 Introduction - - - - - - - 10
2.1 The Nature and Scope of the Informal Market - - - 10
2.1.1 Growth and Social Implication of informal Market.- - 13
2.2 The Concept of Uncaptured Informal Market Income - 14
2.3 Concept and Theories of Revenue - - - - 15
2.4 The Modus Operandi of Revenue Generation at the Community Level- 18
2.5 Issues and Challenges in Capturing the Income of the Informal Market- 20
2.6 Effect of Uncaptured Informal Market Income on Communal
Development- - - - - - - - 23
2.7 Authors View on Capturing the Informal Market- - - - 29
CHAPTER THREE – RESEARCH METHODOLOGY
3.0 Introduction - - - - - - - - 34
3.1 The Study Area - - - - - - - 34
3.2 Research Design - - - - - - - 34
3.3 The Research Population - - - - - - 35
3.4 Sampling Procedure and Sample Size- - - - - 35
3.5 Instrument for Data Collection - - - - - - 35
3.6 Validation of Instrument for Data Collection- - - - 36
3.7 Method of Data Collection- - - - - - - 36
3.8 Method of Data Analysis - - - - - - 36
CHAPTER FOUR – DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 Introduction - - - - - - - - 37
4.1 Data Presentation - - - - - - - 37
4.2 Data Analysis and Interpretation - - - - - 40
4.3 Test of Hypotheses - - - - - - - 46
CHAPTER FIVE – FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction - - - - - - - - 54
5.1 Summary of Findings- - - - - - - 54
5.2 Conclusions - - - - - - - - 56
5.3 Recommendations - - - - - - - 57
References - - - - - - - - - 60
Appendix- - - - - - - - - - 62
LIST OF TABLES
Table 2.1: Differences between informal market and formal market - 13
Table 4.1: Questionnaire administration - - - - - 37
Table 4.2: Distribution of Respondents according to informal market
Operation - - - - - - - 38
Table 4.3: Experience of Respondents - - - - - 39
Table 4.4: Gender distribution of respondents- - - - - 40
Table 4.5: Informal market activities contribute to communal
Development - - - - - - - 40
Table 4.6: Income not captured from the informal market would
affect communal development - - - - 41
Table 4.7: Government at the grassroot is all out to capture income
from the informal market. - - - - - 42
Table 4.8: Informal sector operation has helped its operators
Economically - - - - - - - 42
Table 4.9: Uncaptured informal market poses problem to captured
informal market - - - - - - 43
Table 4.10: Response level of respondents in each table - - - 43
Table 4.11: Coding of responses and grouping of number of respondents- 44
Table 4.12: Observed and expected frequencies - - - - 47
Table 4.13: Computation of chi-square (X2) - - - - 48
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