Informal Economy: Case Study of Street Vendors in Bangkok



Volume 2, Issue 2
KANGRIJ ROEKSIRIPAT

Published online: 24 April 2016
Article Views: 16

Abstract

Street vending is one of the informal economic activities considered significant to Thai people in the economic and day-to-day social life. It is believed that the street vendors form a group of poor and uneducated people. With the increased number of street vendors occupying space on public sidewalks, especially in central business districts, it becomes unclear whether street vending solves unemployment for access labourers. This research attempts to study and analyze types of street vendors in Bangkok under the informal economy framework. The debate on the heterogeneous informal economy has categorized into four schools; dualism, structuralism, legalism and voluntarism. The examination also embodies the market concept with Porters Five Forces of Competitive Position model analysis and the interviews with the street vendors in three case study areas: Inner zone (Pathumwan district – the sidewalk on the opposite side of Siam Paragon mall), Middle zone (Ramkhamhaeng district – the sidewalk on the opposite side of Ramkhamhaeng University) and Outer zone (Minburi district – the sidewalk on Sriburanukit Road). The result indicates that most street vendors in Siam square voluntarily choose to live in vending on a sidewalk and tend to take it as a long-term occupation even though they can be informal wage employment. Moreover, average income and a positive attitude towards self-employment are the important factors that drive them to operate street vending businesses. Meanwhile, street vending is often a family enterprise in the Ramkhamhaeng area, and most vendors do not wish to transform their businesses into formal sectors. The survey conducted in Sriburankit Road reveals that almost all street vendors migrated from other provinces and were previously paid as unskilled workers in formal sectors. They moved to informal trades because of the uncertainty of employment in the mainstream sectors and the inconsistent income with knowledge support of friends and relatives from the same hometown. In particular, the result reveals a common pattern that street vending is the first occupation of some group of vendors and will continue to engage in this activity. Thus, the government needs to design an optimal policy that integrates informal workers into the formal economy and monitors the enforcement of regulations on the modern informal economy.

References

  1. Chen, M. A. (2012). The informal economy: Definitions, theories and policies (WIEGO Working Paper No. 1). Cambridge, US: Women in Informal Employment: Globalizing and Organizing (WIEGO).
  2. Hata, M. (2012). Comparing the economic and social security of franchise street vendors and independent street vendors: Case studies of Klong Toei community in Bangkok, Thailand (Master thesis). Chulalongkorn University, Thialand.
  3. International Labour Organizaion (ILO). (2012). Decent work and informal economy. Retreived from: https://goo.gl/8HbPG1
  4. Maneepong, C., & Walsh, J. C. (2013). A new generation of Bangkok street vendors: Economic crisis as opportunity and threat. Cities, 34, 37-43. https://dx.doi.org/10.1016/j.cities.2012.11.002
  5. Nirathon, N. (2004). Street food vending: Success and indicators (Doctoral thesis). Thammasat University, Thialand.
  6. Thammawut, C. (1999). The way of life of hawkers and vendors in Navanakhon industrial estate (Master thesis). Chulalongkorn University, Thialand.
  7. Waiyanob, S. (2002). The influence of the political leaders on the Bangkok Metropolitan administrations policies to street vendors and hawkers (Master thesis). Chulalongkorn university, Thialand.
  8. Yasmeen, G., & Nirathron, N. (2014). Vending in public space: The case of Bangkok. WIEGO Policy Brief (Urban Policies), 16, 1-18.

To Cite this article

Roeksiripat, K. (2016). Informal economy: Case study of street vendors in Bangkok. International Journal of Business and Administrative Studies, 2(2), 50-57.