Rapid Communication: 2025 Vol: 26 Issue: 2S
Shuyong Li, Korea University, Korea
Citation Information: Li, S. (2025). How economic education influences compliance with economic laws in emerging markets. Journal of Economics and Economic Education Research, 26(S2), 1-3
In emerging markets, the effectiveness of economic laws depends not only on enforcement mechanisms but also on public understanding and voluntary compliance. This article explores the relationship between economic education and legal compliance in such contexts. It argues that when individuals and businesses are economically literate, they are more likely to understand the rationale behind laws, comply with tax obligations, respect contractual agreements, and engage in formal economic activities. The article highlights how integrating economic education into national development strategies can enhance regulatory compliance, reduce corruption, and foster a more robust and inclusive economy.
Economic Education, Legal Compliance, Emerging Markets, Economic Law, Financial Literacy, Regulatory Behavior, Informal Economy, Civic Responsibility.
Emerging markets face complex challenges in implementing economic laws effectively. Issues such as weak enforcement, widespread informal economies, and public distrust of institutions often lead to low levels of compliance. However, a growing body of evidence suggests that economic education can play a vital role in improving voluntary adherence to these laws (Ahlstrom & Bruton, 2006).
Economic laws—ranging from tax codes and trade regulations to labor standards—are often viewed with skepticism or confusion in emerging economies. Economic education helps demystify these laws by explaining their purpose, benefits, and societal impact. When people understand how laws contribute to public goods like infrastructure, healthcare, or social protection, they are more likely to support and follow them (Akang, 2023).
An educated population is more aware of both their rights and obligations under economic law. Economic education fosters legal literacy, enabling individuals to better understand issues such as contract enforcement, consumer protection, and intellectual property rights. This awareness promotes trust in the legal system and discourages exploitative or corrupt practices (Alam et al., 2010).
Tax evasion is a significant barrier to economic development in many emerging markets. Economic education, particularly financial literacy, has been shown to improve tax morale—people’s intrinsic motivation to pay taxes. Understanding how tax revenues are used and the consequences of evasion helps create a more responsible and cooperative citizenry (Arslan & Alqatan, 2020).
Many emerging markets are dominated by informal economies that operate outside of legal and regulatory frameworks. Economic education can guide small business owners and workers toward formalization by helping them understand the benefits—such as legal protection, access to credit, and market expansion. This shift supports broader economic stability and growth (Belahouaoui & Attak, 2024).
When citizens and entrepreneurs are economically informed, they are less vulnerable to manipulation by corrupt officials and more capable of asserting their legal rights. Economic education empowers individuals to challenge unfair practices and demand transparency, creating pressure for institutional reforms and better governance (Blanc & Ottimofiore, 2021).
Trust in public institutions is closely tied to people's understanding of how systems work. Economic education builds confidence in regulatory institutions by revealing how economic laws aim to create fair markets, prevent monopolies, and protect consumers. Informed citizens are more likely to engage with institutions rather than circumvent them (Khan et al., 2024).
Integrating economic education into school curricula can have a generational impact. Youth who learn about economics and legal systems early are more likely to become responsible economic agents. They develop a deeper appreciation for rules, a sense of civic duty, and a readiness to participate in formal economic and political processes (Kim & Li, 2014).
Legal reform alone is not enough to change behavior. Compliance improves significantly when reforms are accompanied by public education campaigns and training programs. Governments and NGOs in emerging markets should incorporate economic education into legal outreach initiatives to maximize the impact of new policies and regulations (Nistor et al., 2018).
Countries like Rwanda, Colombia, and Indonesia have shown promising results from combining economic literacy campaigns with formalization drives and anti-corruption efforts. These examples suggest that economic education is not a luxury but a necessity in the broader strategy to improve legal compliance and economic outcomes (Rachagan s& Satkunasingam, 2009).
In emerging markets, fostering compliance with economic laws requires more than stronger enforcement—it requires informed citizens. Economic education bridges the gap between regulation and understanding, making laws more effective and societies more cooperative. By investing in economic literacy, policymakers can promote transparency, accountability, and sustainable development.
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Received: 01-April-2025, Manuscript No. jeeer-25-15871; Editor assigned: 04-April-2025, PreQC No. jeeer-25-15871(PQ); Reviewed: 17-April-2025, QC No. jeeer-25-15871; Revised: 24-April-2025, Manuscript No. jeeer-25-15871(R); Published: 30-April-2025