Research On Development And Regulation Of Urban Informal Sector

Since1990s, when informal employment began to attract broad attention, informal sector and informal economy have been ignored. This thesis selects informal sectors in Zhongda textile trade area in Guangzhou city as research object, which have connection between fabric market, urban village and migrant people. By literature study, field survey, depth interview and case study, this thesis focus on the characteristics, regulatory system and problems of informal sector and its proprietor, attempt to conclude the formation mechanism of these problems under this regulatory system, and aim to discuss the balance between development and regulatory of informal sector.Firstly, on the basis of the existing related foreign and domestic research experience and theories, this thesis puts forward the importance of regulatory perspective, and tries to build up an analytical framework on informal sector from economy, space and people these three perspectives Secondly, through the empirical study on informal sector, this thesis finds out that informal sectors have already been the important supplement of formal sectors, depending on their flexible, efficient and varied characteristics. The demand from fabric markets to informal sectors, as well as the demand from informal sectors to fabric markets and urban villages, leads to the spatial agglomeration of these informal sectors. With this trend, various problems come out in Zhongda textile trade area, such as traffic jam, fire hazard, etc. As for the proprietors of informal sectors, they start their entrepreneurship depending on their accumulation and social network, show out strong geographical features, live with low quality of life and little social security, and have no clear mind for future development.Thirdly, there are several departments and stakeholders participating in regulation and restriction to informal sectors, such as urban management sectors, neighborhood committee, village economic association, local villagers, etc. This regulation includes demanding registration fee, increasing the rent, limiting the transportation areas, demonstrating the characteristics of temporary, shadow and marginal.Furthermore, under this regulatory system, the proprietors of informal sectors have to face several problems with the development of informal sectors, like industry risk, vicious competition, and pressure from various sources. Based on comprehensive analysis, this thesis concludes that the problems in development of informal sectors come from over-regulation or lack of regulation. Then this thesis tries to figure out what should be paid attention to for the regulation of informal sectors in the future from three perspectives, market development, community governance and ’arrival city’Finally, this thesis concludes the positive meaning of informal sector on industrial development, informal entrepreneurship and social capital. Based on several domestic cases, this thesis proposes4pieces of advices to the management of informal sector.