The rapid expansion of digital platforms and on-demand services has reshaped labour markets worldwide. In developing countries, the gig economy — encompassing platform-mediated ride-hailing, delivery, freelancing, micro tasks and other forms of independent work — is growing faster than in advanced economies, offering new income opportunities for youth, women, and remote communities, while also raising concerns about precariousness, social protection gaps, taxation, and regulatory challenges. This paper provides a comprehensive, literature-based analysis of the economic implications of the gig economy in developing countries. It synthesizes recent empirical findings and institutional reports, discusses channels through which gig work affects employment, income distribution, productivity, and public revenues, examines gender and regional dimensions, presents short case vignettes, and proposes policy recommendations to maximize gains while mitigating risks. Key recommendations include creating portable social protections, improving digital skills and platform data access, modernizing labour laws and taxation frameworks, and fostering local platform competition to retain value domestically. ([World Bank][1])