This paper investigates the patterns of capital entry barriers and capital returns in informal Micro and Small Enterprises (MSE's) using a unique micro data set seven West-African countries. The author's findings support the view of a heterogeneous informal sector that is not primarily host to...

In the past two decades, research on the informal sector has emphasized the heterogeneity of this part of the economy, example in terms of entry costs, firm size, and access to credit, forward- and backward linkages as well as human and physical capital endowments. Yet, not much research has...