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 …

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 …

primary cause that impedes the process of formalization. However whether flexible regulations can encourage formalization by … making gains of formalization more accessible and certain remains a question. In this paper we argue that flexible … regulations does not necessarily manifest into the incentives that are essential for formalization. Reducing rigidities in …