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In developing countries, informal firms (those that are not registered with the government) account for about half of all economic activity. We consider three broad views of the role of such firms in economic development. According to the romantic view, these firms would become the engine of...
Persistent link: https://www.econbiz.de/10013138466
In developing countries, informal firms (those that are not registered with the government) account for about half of all economic activity. We consider three broad views of the role of such firms in economic development. According to the romantic view, these firms would become the engine of...
Persistent link: https://www.econbiz.de/10012720126
In developing countries, informal firms (those that are not registered with the government) account for about half of all economic activity. We consider three broad views of the role of such firms in economic development. According to the romantic view, these firms would become the engine of...
Persistent link: https://www.econbiz.de/10012464127
Persistent link: https://www.econbiz.de/10010381008
Persistent link: https://www.econbiz.de/10010499751
the total in the poorest countries. Second, it has extremely low productivity compared to the formal economy: informal … regulations is an important reason for informality, the productivity of informal firms is too low for them to thrive in the formal …
Persistent link: https://www.econbiz.de/10013052683
the total in the poorest countries. Second, it has extremely low productivity compared to the formal economy: informal … regulations is an important reason for informality, the productivity of informal firms is too low for them to thrive in the formal …
Persistent link: https://www.econbiz.de/10012458461
We develop a model where formal sector firms pay tax and informal ones do not, but informal firms risk incurring the penalty associated with non-compliance. Workers may enter self-employment or search for jobs as employees. Workers with higher managerial skills will run larger firms while...
Persistent link: https://www.econbiz.de/10009548123