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Is the lack of "managerial capital", alongside human and financial capital, a constraint on the growth of firms in developing countries? The evidence on this is still mixed, especially among small and medium enterprises. This paper uses a panel of Vietnamese small and medium enterprises to...
Persistent link: https://www.econbiz.de/10011874046
A quantitative framework of firm dynamics is developed where the size of the informal sector is determined by financial constraints and the burden of taxation. Improving access to credit for formal sector firms increases aggregate TFP and output while reducing the size of the informal sector....
Persistent link: https://www.econbiz.de/10011489988
Many informal firms in developing countries would not be viable if they were to comply with the minimum wage law. This means the authorities have an incentive to turn a blind eye to nonenforcement in a substantial share of firms. We also survey enforcement mechanisms for the minimum wage across...
Persistent link: https://www.econbiz.de/10012663184
We examine the patterns and correlates of the productivity gap between male-owned and female-owned firms for informal enterprises in India. Female-owned firms are on average 45 per cent less productive than male-owned firms, with the clearest productivity gaps observed at the lower end of the...
Persistent link: https://www.econbiz.de/10012798554
The lingering policy dilemma facing many governments in sub-Saharan Africa in recent years is what can be done in the short to medium term to boost the output and incomes of individuals and enterprises in the informal sector, given the size and persistence of the sector in the region. In this...
Persistent link: https://www.econbiz.de/10012590880
be expected to have a positive impact on productivity, thereby making entry (or contestability of markets) desirable …. Traditional research in the context of entry has explored the strategic reactions of incumbent firms when threatened by the … possibility of entry. However, following De Soto (1989), there has been increasing emphasis on regulatory and institutional …
Persistent link: https://www.econbiz.de/10005677739
The informal sector is a prominent characteristic of many developing countries. Most of the literature has focused on understanding the determinants of informality. The connection between the informal sector and economic development is, nonetheless, relatively less understood. One of the most...
Persistent link: https://www.econbiz.de/10008685045
entry costs and financial frictions (as opposed to the sum of their individual effects) is the main driver of these …
Persistent link: https://www.econbiz.de/10011051923
observed between the US and de- veloping countries in the human capital stock. Moreover, formal sector entry costs and …
Persistent link: https://www.econbiz.de/10010615500
Theoretical models of the informal sector mostly assume—or end up with—a positive correlation between a measure of taxes and the size of the informal sector. However, some recent empirical studies associate higher taxes with a smaller informal sector size. In this paper, we build a...
Persistent link: https://www.econbiz.de/10011263209