Do Informal Firms Want to Formalize and Does It Help Them If They Do?
Most firms in developing countries are informal. Does it make sense for them to formalize? Hernando de Soto has famously argued that informal firms would like to be formal, only that burden some entry barriers prevent them. The result, spurred by the efforts of doing business and investment climate reform efforts has been efforts around the world to streamline the entry process. However, a countervailing view of informality views informal firm owners as rationally weighing up the costs and benefits of formalizing, and rationally choosing only to become formal when they grow large enough to benefit from the formal institutions of society. In this view, smaller, less productive firms don't see any gain to formalizing, so choose not to.
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| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012-03
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| Subjects: | ADVERTISING, BANK ACCOUNT, BANK POLICY, BUSINESSES, DEVELOPING COUNTRIES, ELECTRICITY, EMPLOYMENT, ENTRY BARRIERS, FINANCIAL SECTOR, FIRMS, GOVERNMENT CONTRACT, INVESTMENT CLIMATE, LOCAL GOVERNMENT, MONETARY BENEFITS, PERSONAL LOANS, POLICY IMPLICATIONS, REGISTRATION PROCESS, RESULT, RESULTS, SME, TAX, Microdata Set, |
| Online Access: | http://documents.worldbank.org/curated/en/2012/03/16240749/informal-firms-want-formalize-help https://hdl.handle.net/10986/10053 |
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dig-okr-10986100532024-08-08T15:16:25Z Do Informal Firms Want to Formalize and Does It Help Them If They Do? Mel, Suresh de McKenzie, David Woodruff, Christopher ADVERTISING BANK ACCOUNT BANK POLICY BUSINESSES DEVELOPING COUNTRIES ELECTRICITY EMPLOYMENT ENTRY BARRIERS FINANCIAL SECTOR FIRMS GOVERNMENT CONTRACT INVESTMENT CLIMATE LOCAL GOVERNMENT MONETARY BENEFITS PERSONAL LOANS POLICY IMPLICATIONS REGISTRATION PROCESS RESULT RESULTS SME TAX Microdata Set Most firms in developing countries are informal. Does it make sense for them to formalize? Hernando de Soto has famously argued that informal firms would like to be formal, only that burden some entry barriers prevent them. The result, spurred by the efforts of doing business and investment climate reform efforts has been efforts around the world to streamline the entry process. However, a countervailing view of informality views informal firm owners as rationally weighing up the costs and benefits of formalizing, and rationally choosing only to become formal when they grow large enough to benefit from the formal institutions of society. In this view, smaller, less productive firms don't see any gain to formalizing, so choose not to. 2012-08-13T10:16:55Z 2012-08-13T10:16:55Z 2012-03 http://documents.worldbank.org/curated/en/2012/03/16240749/informal-firms-want-formalize-help https://hdl.handle.net/10986/10053 English Finance and PSD Impact; No. 17 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC |
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Banco Mundial |
| collection |
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Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
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| databasecode |
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| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
ADVERTISING BANK ACCOUNT BANK POLICY BUSINESSES DEVELOPING COUNTRIES ELECTRICITY EMPLOYMENT ENTRY BARRIERS FINANCIAL SECTOR FIRMS GOVERNMENT CONTRACT INVESTMENT CLIMATE LOCAL GOVERNMENT MONETARY BENEFITS PERSONAL LOANS POLICY IMPLICATIONS REGISTRATION PROCESS RESULT RESULTS SME TAX Microdata Set ADVERTISING BANK ACCOUNT BANK POLICY BUSINESSES DEVELOPING COUNTRIES ELECTRICITY EMPLOYMENT ENTRY BARRIERS FINANCIAL SECTOR FIRMS GOVERNMENT CONTRACT INVESTMENT CLIMATE LOCAL GOVERNMENT MONETARY BENEFITS PERSONAL LOANS POLICY IMPLICATIONS REGISTRATION PROCESS RESULT RESULTS SME TAX Microdata Set |
| spellingShingle |
ADVERTISING BANK ACCOUNT BANK POLICY BUSINESSES DEVELOPING COUNTRIES ELECTRICITY EMPLOYMENT ENTRY BARRIERS FINANCIAL SECTOR FIRMS GOVERNMENT CONTRACT INVESTMENT CLIMATE LOCAL GOVERNMENT MONETARY BENEFITS PERSONAL LOANS POLICY IMPLICATIONS REGISTRATION PROCESS RESULT RESULTS SME TAX Microdata Set ADVERTISING BANK ACCOUNT BANK POLICY BUSINESSES DEVELOPING COUNTRIES ELECTRICITY EMPLOYMENT ENTRY BARRIERS FINANCIAL SECTOR FIRMS GOVERNMENT CONTRACT INVESTMENT CLIMATE LOCAL GOVERNMENT MONETARY BENEFITS PERSONAL LOANS POLICY IMPLICATIONS REGISTRATION PROCESS RESULT RESULTS SME TAX Microdata Set Mel, Suresh de McKenzie, David Woodruff, Christopher Do Informal Firms Want to Formalize and Does It Help Them If They Do? |
| description |
Most firms in developing countries are
informal. Does it make sense for them to formalize? Hernando
de Soto has famously argued that informal firms would like
to be formal, only that burden some entry barriers prevent
them. The result, spurred by the efforts of doing business
and investment climate reform efforts has been efforts
around the world to streamline the entry process. However, a
countervailing view of informality views informal firm
owners as rationally weighing up the costs and benefits of
formalizing, and rationally choosing only to become formal
when they grow large enough to benefit from the formal
institutions of society. In this view, smaller, less
productive firms don't see any gain to formalizing, so
choose not to. |
| topic_facet |
ADVERTISING BANK ACCOUNT BANK POLICY BUSINESSES DEVELOPING COUNTRIES ELECTRICITY EMPLOYMENT ENTRY BARRIERS FINANCIAL SECTOR FIRMS GOVERNMENT CONTRACT INVESTMENT CLIMATE LOCAL GOVERNMENT MONETARY BENEFITS PERSONAL LOANS POLICY IMPLICATIONS REGISTRATION PROCESS RESULT RESULTS SME TAX Microdata Set |
| author |
Mel, Suresh de McKenzie, David Woodruff, Christopher |
| author_facet |
Mel, Suresh de McKenzie, David Woodruff, Christopher |
| author_sort |
Mel, Suresh de |
| title |
Do Informal Firms Want to Formalize and Does It Help Them If They Do? |
| title_short |
Do Informal Firms Want to Formalize and Does It Help Them If They Do? |
| title_full |
Do Informal Firms Want to Formalize and Does It Help Them If They Do? |
| title_fullStr |
Do Informal Firms Want to Formalize and Does It Help Them If They Do? |
| title_full_unstemmed |
Do Informal Firms Want to Formalize and Does It Help Them If They Do? |
| title_sort |
do informal firms want to formalize and does it help them if they do? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012-03 |
| url |
http://documents.worldbank.org/curated/en/2012/03/16240749/informal-firms-want-formalize-help https://hdl.handle.net/10986/10053 |
| work_keys_str_mv |
AT melsureshde doinformalfirmswanttoformalizeanddoesithelpthemiftheydo AT mckenziedavid doinformalfirmswanttoformalizeanddoesithelpthemiftheydo AT woodruffchristopher doinformalfirmswanttoformalizeanddoesithelpthemiftheydo |
| _version_ |
1807155695663972352 |