Evaluating the relationship between sustainable development, localisation and the informal economy: evidence from Romania

Abstract

The aim of this paper is to deepen understanding of the relationship between sustainable development, localisation and the purchase of goods and services from the informal economy. This has not before been investigated. To do so, it reports a survey of 1,209 respondents conducted during October-December 2021 in Romania, a country with one of the largest informal economies in the European Union. The findings reveal a link between consumers' motives to purchase informal goods and services and the pursuit of sustainable development through localisation. The analysis shows that there is no purely sustainability-driven consumer in the informal economy, but this rationale is prevalent as one of several motives for a large proportion of consumers purchasing goods and services from the informal economy, who do so explicitly for the purposes of environmental protection and localisation. The implications for theorising and tackling the informal economy are then discussed.

Keywords

• sustainable development
• localisation
• informal economy
• sustainable consumption