informal sector, business formalization, reviewing the municipal councils' bylaws that are prohibitive, and establish vending …

, especially the top tier firms, become formal either because they perceive benefits of formalization such as an increase in the … the pre-formalization trends, our results show that productive household businesses stay informal because net costs from … tax payment may surpass net benefits from formalization. Moreover, government controls do not promote formalization …

formalization and firm outcomes. Instead of applying a binary formality indicator, it constructs a conceptual framework that regards … effects of formalization. It suggests that the most informal firms do not benefit from formalization due to their underlying … formalization. Further, an improvement of the costs and benefits is not enough: better institutions are needed. …

manufacturing SMEs, growing faster than other firms and increasing efficiency. We identify two 'regimes' of formalization. Until … early 2010, more productive (previously) informal firms formalize. Policy changes and accelerated formalization then alter … the characteristics of formalizers, as less productive firms become formal. While this formalization wave depresses …

This paper examines the relationship between formalization and firm-level outcomes in Vietnam using a unique panel … of formalization materialize in the short term and persist over time. These benefits run through access to improved …