THE ROLE OF THE INFORMAL INDUSTRIAL SECTOR IN ACHIEVING SOME SUSTAINABLE DEVELOPMENT GOALS IN THE ARAB REPUBLIC OF EGYPT

Document Type : Original Article

Authors

1 Faculty of Graduate Studies and Environmental Research, Ain Shams University

2 Faculty of Commerce , Ain Shams University

3 Faculty of Commerce, Ain Shams University

4 Ministry of Industry and Trade.

Abstract

The informal economy remains a persistent structural challenge to sustainable development, particularly in developing countries. Within this context, the informal industrial sector has significant implications due to its complex economic, social, and environmental dimensions. This study aims to analyze the role of Egypt’s informal industrial sector in achieving selected Sustainable Development Goals (SDGs), based on a set of statistical hypotheses tested using national time-series data from 2015 to 2024. The findings reveal a strong and statistically significant positive relationship between the expansion of the informal industrial sector and the rise in poverty and unemployment rates. Moreover, the sector is a major contributor to the accumulation of untreated industrial waste, exacerbating environmental degradation. Conversely, no significant correlation was found between the sector and national carbon emissions, indicating the influence of other contributing factors. Based on these results, the study recommends designing multidimensional, sector-specific policies that incorporate environmental management and the principles of the circular economy. This approach would enhance the integration of informal industrial activities into the formal economy, while simultaneously supporting SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).
 
 
 

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