Demand‐Side Perspective on the Informal Economy: A Review and Research Agenda

ABSTRACT

This study presents a focused and cohesive investigation into the demand side of the informal economy through a systematic literature review (SLR) of 76 peer‐reviewed articles. While previous research has predominantly addressed supply‐side dynamics, this study shifts the focus to consumer related factors within informal markets. The review follows a rigorous protocol using Web of Science and Scopus databases, adhering to PRISMA guidelines and applying established frameworks: theories–contexts–methods (TCM) and antecedents–decisions–outcomes (ADO). Our findings highlight that while consumer antecedents—such as economic, social, and contextual drivers—are well documented, decisions and outcomes remain underexplored. This study contributes by developing an integrative model that maps the complex interplay between consumer behavior, firm strategies, and policy responses. Theoretically, it advances understanding by bridging informal economy literature with marketing and behavioral theories. Practically, it offers actionable insights for policymakers, businesses, and informal actors, enabling more inclusive and responsive approaches to economic governance and consumer empowerment.