Back to Search Start Over

Do Informal Businesses Gain From Registration and How? Panel Data Evidence from Vietnam.

Authors :
Demenet, Axel
Razafindrakoto, Mireille
Roubaud, François
Source :
World Development. Aug2016, Vol. 84, p326-341. 16p.
Publication Year :
2016

Abstract

Summary This paper evaluates the impact of Household Businesses’ decision to leave the informal sector on their performance and mode of operation. It capitalizes on a unique panel dataset, result of a five-year project. Using dynamic specifications, we find a significant impact of formalization on annual value added of 20% on average. More importantly, we show that this improvement is not valid for the smallest units, and that it is made possible for the others by changing their operating conditions. Released from the constraints of informality, they can access better equipment, increase their scale of operation, and operate in a more competitive environment. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
0305750X
Volume :
84
Database :
Academic Search Index
Journal :
World Development
Publication Type :
Academic Journal
Accession number :
115266228
Full Text :
https://doi.org/10.1016/j.worlddev.2015.09.002