Who Fears Competition from Informal Firms? Evidence from Latin America

Who Fears Competition from Informal Firms? Evidence from Latin America

Author: Francesca Lamanna

Publisher: World Bank Publications

Published: 2012

Total Pages: 42

ISBN-13:

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This paper investigates who is most affected by informal competition and how regulation and enforcement affect the extent and nature of this competition. Using newly-collected enterprise data for 6,466 manufacturing formal firms across 14 countries in Latin America, the authors show that formal firms affected by head-to-head competition with informal firms largely resemble them. They are small credit constrained, underutilize their productive capacity, serve smaller customers, and are in markets with low entry costs. In countries where the government is effective and business regulations onerous, formal firms in industries characterized by low costs to entry feel the sting of informal competition more than in other business environments. Finally, the analysis finds that in an economy with relatively onerous tax regulations and a government that poorly enforces its tax code, the percentage of firms adversely affected by informal competition will be reduced from 38.8 to 37.7 percent when the government increases enforcement to cover all firms.


Book Synopsis Who Fears Competition from Informal Firms? Evidence from Latin America by : Francesca Lamanna

Download or read book Who Fears Competition from Informal Firms? Evidence from Latin America written by Francesca Lamanna and published by World Bank Publications. This book was released on 2012 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates who is most affected by informal competition and how regulation and enforcement affect the extent and nature of this competition. Using newly-collected enterprise data for 6,466 manufacturing formal firms across 14 countries in Latin America, the authors show that formal firms affected by head-to-head competition with informal firms largely resemble them. They are small credit constrained, underutilize their productive capacity, serve smaller customers, and are in markets with low entry costs. In countries where the government is effective and business regulations onerous, formal firms in industries characterized by low costs to entry feel the sting of informal competition more than in other business environments. Finally, the analysis finds that in an economy with relatively onerous tax regulations and a government that poorly enforces its tax code, the percentage of firms adversely affected by informal competition will be reduced from 38.8 to 37.7 percent when the government increases enforcement to cover all firms.

Who Fears Competition from Informal Firms? Evidence from Latin America

Who Fears Competition from Informal Firms? Evidence from Latin America

Author: Francesca Lamanna

Publisher:

Published: 2016

Total Pages: 42

ISBN-13:

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This paper investigates who is most affected by informal competition and how regulation and enforcement affect the extent and nature of this competition. Using newly-collected enterprise data for 6,466 manufacturing formal firms across 14 countries in Latin America, the authors show that formal firms affected by head-to-head competition with informal firms largely resemble them. They are small credit constrained, underutilize their productive capacity, serve smaller customers, and are in markets with low entry costs. In countries where the government is effective and business regulations onerous, formal firms in industries characterized by low costs to entry feel the sting of informal competition more than in other business environments. Finally, the analysis finds that in an economy with relatively onerous tax regulations and a government that poorly enforces its tax code, the percentage of firms adversely affected by informal competition will be reduced from 38.8 to 37.7 percent when the government increases enforcement to cover all firms.


Book Synopsis Who Fears Competition from Informal Firms? Evidence from Latin America by : Francesca Lamanna

Download or read book Who Fears Competition from Informal Firms? Evidence from Latin America written by Francesca Lamanna and published by . This book was released on 2016 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates who is most affected by informal competition and how regulation and enforcement affect the extent and nature of this competition. Using newly-collected enterprise data for 6,466 manufacturing formal firms across 14 countries in Latin America, the authors show that formal firms affected by head-to-head competition with informal firms largely resemble them. They are small credit constrained, underutilize their productive capacity, serve smaller customers, and are in markets with low entry costs. In countries where the government is effective and business regulations onerous, formal firms in industries characterized by low costs to entry feel the sting of informal competition more than in other business environments. Finally, the analysis finds that in an economy with relatively onerous tax regulations and a government that poorly enforces its tax code, the percentage of firms adversely affected by informal competition will be reduced from 38.8 to 37.7 percent when the government increases enforcement to cover all firms.

Who Fears Competition from Informal Firms? Evidence from Latin America

Who Fears Competition from Informal Firms? Evidence from Latin America

Author: Francesca Lamanna

Publisher: World Bank Publications

Published: 2007

Total Pages: 42

ISBN-13:

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Abstract: This paper investigates who is most affected by informal competition and how regulation and enforcement affect the extent and nature of this competition. Using newly-collected enterprise data for 6,466 manufacturing formal firms across 14 countries in Latin America, the authors show that formal firms affected by head-to-head competition with informal firms largely resemble them. They are small credit constrained, underutilize their productive capacity, serve smaller customers, and are in markets with low entry costs. In countries where the government is effective and business regulations onerous, formal firms in industries characterized by low costs to entry feel the sting of informal competition more than in other business environments. Finally, the analysis finds that in an economy with relatively onerous tax regulations and a government that poorly enforces its tax code, the percentage of firms adversely affected by informal competition will be reduced from 38.8 to 37.7 percent when the government increases enforcement to cover all firms.


Book Synopsis Who Fears Competition from Informal Firms? Evidence from Latin America by : Francesca Lamanna

Download or read book Who Fears Competition from Informal Firms? Evidence from Latin America written by Francesca Lamanna and published by World Bank Publications. This book was released on 2007 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This paper investigates who is most affected by informal competition and how regulation and enforcement affect the extent and nature of this competition. Using newly-collected enterprise data for 6,466 manufacturing formal firms across 14 countries in Latin America, the authors show that formal firms affected by head-to-head competition with informal firms largely resemble them. They are small credit constrained, underutilize their productive capacity, serve smaller customers, and are in markets with low entry costs. In countries where the government is effective and business regulations onerous, formal firms in industries characterized by low costs to entry feel the sting of informal competition more than in other business environments. Finally, the analysis finds that in an economy with relatively onerous tax regulations and a government that poorly enforces its tax code, the percentage of firms adversely affected by informal competition will be reduced from 38.8 to 37.7 percent when the government increases enforcement to cover all firms.

The economics of the informal sector : a simple model and some empirical evidence from Latin America

The economics of the informal sector : a simple model and some empirical evidence from Latin America

Author: Norman A. Loayza

Publisher: World Bank Publications

Published: 1997

Total Pages: 60

ISBN-13:

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Book Synopsis The economics of the informal sector : a simple model and some empirical evidence from Latin America by : Norman A. Loayza

Download or read book The economics of the informal sector : a simple model and some empirical evidence from Latin America written by Norman A. Loayza and published by World Bank Publications. This book was released on 1997 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Informal Economy

The Informal Economy

Author: Ioana Horodnic

Publisher: Routledge

Published: 2017-09-22

Total Pages: 268

ISBN-13: 1351655329

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During much of the twentieth century, informal employment and entrepreneurship was commonly depicted as a residue from a previous era. Its continuing presence was seen to be a sign of "backwardness" whilst the formal economy represented "progress". In recent decades, however, numerous studies have revealed not only that informal employment is extensive and persistent but also that it is growing relative to formal employment in many populations. Whilst in the developing world, the informal economy is often found to be the mainstream economy, nevertheless, in the developed world too, informality is currently still estimated to account for notable per cent of GDP. The Informal Economy: Exploring Drivers and Practices intends to engage with these issues, providing a much-need ‘contextualised’ approach to explain the persistence and growth of forms of informal economic practices and entrepreneurial activities in the twenty-first century. Using a diverse range of empirical case studies from Europe, Africa, North Africa and Asia, this book unpacks the different varieties of forms of informal work and entrepreneurship and provides a critical analysis of existing theorisations used to explain such phenomena. This book’s aim is to examine the nature and persistence of informal work and entrepreneurship, across a variety of empirical settings, from within the developed world, the developing world and within transformation economies within post-socialist spaces. Given its worldwide, interdisciplinary and multidisciplinary approach and recent interest in the informal economies by a number of disciplines and organisations, this book will be of vital reading to those operating in the fields of: Economics, political economy and management, Human and economic geography and Economic anthropology and sociology as well as development studies


Book Synopsis The Informal Economy by : Ioana Horodnic

Download or read book The Informal Economy written by Ioana Horodnic and published by Routledge. This book was released on 2017-09-22 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: During much of the twentieth century, informal employment and entrepreneurship was commonly depicted as a residue from a previous era. Its continuing presence was seen to be a sign of "backwardness" whilst the formal economy represented "progress". In recent decades, however, numerous studies have revealed not only that informal employment is extensive and persistent but also that it is growing relative to formal employment in many populations. Whilst in the developing world, the informal economy is often found to be the mainstream economy, nevertheless, in the developed world too, informality is currently still estimated to account for notable per cent of GDP. The Informal Economy: Exploring Drivers and Practices intends to engage with these issues, providing a much-need ‘contextualised’ approach to explain the persistence and growth of forms of informal economic practices and entrepreneurial activities in the twenty-first century. Using a diverse range of empirical case studies from Europe, Africa, North Africa and Asia, this book unpacks the different varieties of forms of informal work and entrepreneurship and provides a critical analysis of existing theorisations used to explain such phenomena. This book’s aim is to examine the nature and persistence of informal work and entrepreneurship, across a variety of empirical settings, from within the developed world, the developing world and within transformation economies within post-socialist spaces. Given its worldwide, interdisciplinary and multidisciplinary approach and recent interest in the informal economies by a number of disciplines and organisations, this book will be of vital reading to those operating in the fields of: Economics, political economy and management, Human and economic geography and Economic anthropology and sociology as well as development studies

Global Networks and Innovation in China

Global Networks and Innovation in China

Author: Tian Wei

Publisher: Routledge

Published: 2021-07-19

Total Pages: 130

ISBN-13: 1000404579

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After almost twenty years of internationalization, Chinese firms have shown their growing innovation capability through benefiting from global networks and domestic efforts. However, how Chinese firm innovation is facilitated at the international and domestic levels remains to be understood. This book investigates innovation in China from three aspects. First, starting at the international level, the effects of Chinese–foreign linkages in innovation are examined from the relationship view and the foreign ownership perspective. Second, before moving to the domestic level, the moderating role of global networks (e.g., global supply chain collaboration) is examined to understand the relationship between competition of unregistered firms and innovation of registered firms. Third, at the domestic level, innovation is studied from both upstream and downstream of the value chain: consumers’ decision-making in innovative products and strategic choices, and environment constraints for product innovation. Collectively, this book actively investigates innovation in China at international and domestic levels. It investigates how the global networks contribute to innovation in China and how domestic Chinese firms strengthen their innovation capability. The volume, thus, makes an important attempt to extend existing knowledge on this subject and provides new insights to scholars and practitioners. The chapters in this book were originally published as a special issue of International Studies of Management & Organization.


Book Synopsis Global Networks and Innovation in China by : Tian Wei

Download or read book Global Networks and Innovation in China written by Tian Wei and published by Routledge. This book was released on 2021-07-19 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: After almost twenty years of internationalization, Chinese firms have shown their growing innovation capability through benefiting from global networks and domestic efforts. However, how Chinese firm innovation is facilitated at the international and domestic levels remains to be understood. This book investigates innovation in China from three aspects. First, starting at the international level, the effects of Chinese–foreign linkages in innovation are examined from the relationship view and the foreign ownership perspective. Second, before moving to the domestic level, the moderating role of global networks (e.g., global supply chain collaboration) is examined to understand the relationship between competition of unregistered firms and innovation of registered firms. Third, at the domestic level, innovation is studied from both upstream and downstream of the value chain: consumers’ decision-making in innovative products and strategic choices, and environment constraints for product innovation. Collectively, this book actively investigates innovation in China at international and domestic levels. It investigates how the global networks contribute to innovation in China and how domestic Chinese firms strengthen their innovation capability. The volume, thus, makes an important attempt to extend existing knowledge on this subject and provides new insights to scholars and practitioners. The chapters in this book were originally published as a special issue of International Studies of Management & Organization.

Competition Law in Developing Countries

Competition Law in Developing Countries

Author: Thomas K. Cheng

Publisher: Oxford University Press, USA

Published: 2020-05-28

Total Pages: 609

ISBN-13: 0198862695

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This book brings together perspectives of development economics and law to tackle the relationship between competition law enforcement and economic development. It addresses the question of whether, and how, competition law enforcement helps to promote economic growth and development. This question is highly pertinent for developing countries largely because many developing countries have only adopted competition law in recent years: about thirty jurisdictions had in place a competition law in the early 1980s, and there are now more than 130 competition law regimes across the world, of which many are developing countries. The book proposes a customized approach to competition law enforcement for developing countries, set against the background of the academic and policy debate concerning convergence of competition law. The implicit premise of convergence is that there may exist one, or a few, correct approaches to competition law enforcement, which in most cases emanate from developed jurisdictions, that are applicable to all. This book rejects this assumption and argues that developing countries ought to tailor competition law enforcement to their own economic and political circumstances. In particular, it suggests how competition law enforcement can better incorporate development concerns without causing undue dilution of its traditional focus on protecting consumer welfare. It proposes ways in which approaches to competition law enforcement need to be adjusted to reflect the special economic characteristics of developing country economies and the more limited enforcement capacity of developing country competition authorities. Finally, it also addresses the long-running debate concerning the desirability and viability of industrial policy for developing countries. The author would like to acknowledge the Research Grants Council of Hong Kong for its generous support. The work in this book was fully supported by a grant from the Research Grants Council of Hong Kong (Project No. HKU 742412H).


Book Synopsis Competition Law in Developing Countries by : Thomas K. Cheng

Download or read book Competition Law in Developing Countries written by Thomas K. Cheng and published by Oxford University Press, USA. This book was released on 2020-05-28 with total page 609 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings together perspectives of development economics and law to tackle the relationship between competition law enforcement and economic development. It addresses the question of whether, and how, competition law enforcement helps to promote economic growth and development. This question is highly pertinent for developing countries largely because many developing countries have only adopted competition law in recent years: about thirty jurisdictions had in place a competition law in the early 1980s, and there are now more than 130 competition law regimes across the world, of which many are developing countries. The book proposes a customized approach to competition law enforcement for developing countries, set against the background of the academic and policy debate concerning convergence of competition law. The implicit premise of convergence is that there may exist one, or a few, correct approaches to competition law enforcement, which in most cases emanate from developed jurisdictions, that are applicable to all. This book rejects this assumption and argues that developing countries ought to tailor competition law enforcement to their own economic and political circumstances. In particular, it suggests how competition law enforcement can better incorporate development concerns without causing undue dilution of its traditional focus on protecting consumer welfare. It proposes ways in which approaches to competition law enforcement need to be adjusted to reflect the special economic characteristics of developing country economies and the more limited enforcement capacity of developing country competition authorities. Finally, it also addresses the long-running debate concerning the desirability and viability of industrial policy for developing countries. The author would like to acknowledge the Research Grants Council of Hong Kong for its generous support. The work in this book was fully supported by a grant from the Research Grants Council of Hong Kong (Project No. HKU 742412H).

The Informal Economy in Global Perspective

The Informal Economy in Global Perspective

Author: Abel Polese

Publisher: Springer

Published: 2017-04-18

Total Pages: 324

ISBN-13: 331940931X

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This book critically engages with how formal and informal mechanisms of governance are used across the world. Specifically, it analyzes how the governance mechanisms of formal institutions are questioned, challenged and renegotiated through informal institutions. Whilst there is an emerging body of scholarship focusing on informal practices, this is scattered across a number of disciplines. This edited collection, by contrast, fosters a dialogue on these issues, moving away from monodisciplinary and normative methodologies that view informal institutions and practices simply as temporary economic phenomena. In doing so, the authors provide a wider understanding of how governance is composed of both the formal and the informal, which complement each other but are also constantly in competition. This novel approach will appeal to social scientists, economists, policy-makers, practitioners, and anyone else willing to widen their understanding of how governance works.


Book Synopsis The Informal Economy in Global Perspective by : Abel Polese

Download or read book The Informal Economy in Global Perspective written by Abel Polese and published by Springer. This book was released on 2017-04-18 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book critically engages with how formal and informal mechanisms of governance are used across the world. Specifically, it analyzes how the governance mechanisms of formal institutions are questioned, challenged and renegotiated through informal institutions. Whilst there is an emerging body of scholarship focusing on informal practices, this is scattered across a number of disciplines. This edited collection, by contrast, fosters a dialogue on these issues, moving away from monodisciplinary and normative methodologies that view informal institutions and practices simply as temporary economic phenomena. In doing so, the authors provide a wider understanding of how governance is composed of both the formal and the informal, which complement each other but are also constantly in competition. This novel approach will appeal to social scientists, economists, policy-makers, practitioners, and anyone else willing to widen their understanding of how governance works.

Formalizing the Shadow Economy in Serbia

Formalizing the Shadow Economy in Serbia

Author: Gorana Krstić

Publisher: Springer

Published: 2015-04-21

Total Pages: 179

ISBN-13: 331913437X

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The main objective of this book is to develop a strategy and policy measures to enhance the formalization of the shadow economy in order to improve the competitiveness of the economy and contribute to economic growth; it explores these issues with special reference to Serbia. The size and development of the shadow economy in Serbia and other Central and Eastern European countries are estimated using two different methods (the MIMIC method and household-tax-compliance method). Micro-estimates are based on a special survey of business entities in Serbia, which for the first time allows us to explore the shadow economy from the perspective of enterprises and entrepreneurs. The authors identify the types of shadow economy at work in business entities, the determinants of shadow economy participation, and the impact of competition from the informal sector on businesses. Readers will learn both about the potential fiscal effects of reducing the shadow economy to the levels observed in more developed countries and the effects that formalization of the shadow economy can have on economic growth.


Book Synopsis Formalizing the Shadow Economy in Serbia by : Gorana Krstić

Download or read book Formalizing the Shadow Economy in Serbia written by Gorana Krstić and published by Springer. This book was released on 2015-04-21 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main objective of this book is to develop a strategy and policy measures to enhance the formalization of the shadow economy in order to improve the competitiveness of the economy and contribute to economic growth; it explores these issues with special reference to Serbia. The size and development of the shadow economy in Serbia and other Central and Eastern European countries are estimated using two different methods (the MIMIC method and household-tax-compliance method). Micro-estimates are based on a special survey of business entities in Serbia, which for the first time allows us to explore the shadow economy from the perspective of enterprises and entrepreneurs. The authors identify the types of shadow economy at work in business entities, the determinants of shadow economy participation, and the impact of competition from the informal sector on businesses. Readers will learn both about the potential fiscal effects of reducing the shadow economy to the levels observed in more developed countries and the effects that formalization of the shadow economy can have on economic growth.

The Oxford Handbook of the African Sahel

The Oxford Handbook of the African Sahel

Author: Leonardo A. Villalón

Publisher: Oxford University Press

Published: 2021-10-15

Total Pages: 816

ISBN-13: 0192548913

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Long on the margins of both scholarly and policy concerns, the countries of the West African Sahel have recently attracted world attention, primarily as a key battleground in the global 'war on terror'. This book moves beyond this narrow focus, providing a multidimensional and interdisciplinary assessment of the region in all of its complexity. The focus is on the six countries at the heart of the Sahelian geographic space: Senegal, Mauritania, Mali, Burkina Faso, Niger, and Chad. Collectively, the chapters explore the commonalities and interconnections that link these countries and their fates, while also underscoring their diversity and the variations in their current realities. The Sahel today is at an important crossroads, under multiple pressures of diverse kinds: environmental, political, demographic, and economic, as well as rapidly changing social and religious dynamics. It is also marked by striking dynamism and experimentation, drawing on a long history of innovation and cultural transfer. In many ways the Sahel is today on the cutting edge of grand natural experiments exploring how humans will adapt to climate change, to technological innovation, to the global movement of populations and the restructuring of world politics, to urbanization, social change, and rapid demographic growth, and to inter-religious contact. The region is a weathervane on the front lines of the forces of global change. In nine thematic sections, the chapters in this book offer holistic analyses of the key forces shaping the region. Including scholars based in Africa, Europe, and the United States, the authors represent an exceptional breadth and depth of expertise on the Sahel.


Book Synopsis The Oxford Handbook of the African Sahel by : Leonardo A. Villalón

Download or read book The Oxford Handbook of the African Sahel written by Leonardo A. Villalón and published by Oxford University Press. This book was released on 2021-10-15 with total page 816 pages. Available in PDF, EPUB and Kindle. Book excerpt: Long on the margins of both scholarly and policy concerns, the countries of the West African Sahel have recently attracted world attention, primarily as a key battleground in the global 'war on terror'. This book moves beyond this narrow focus, providing a multidimensional and interdisciplinary assessment of the region in all of its complexity. The focus is on the six countries at the heart of the Sahelian geographic space: Senegal, Mauritania, Mali, Burkina Faso, Niger, and Chad. Collectively, the chapters explore the commonalities and interconnections that link these countries and their fates, while also underscoring their diversity and the variations in their current realities. The Sahel today is at an important crossroads, under multiple pressures of diverse kinds: environmental, political, demographic, and economic, as well as rapidly changing social and religious dynamics. It is also marked by striking dynamism and experimentation, drawing on a long history of innovation and cultural transfer. In many ways the Sahel is today on the cutting edge of grand natural experiments exploring how humans will adapt to climate change, to technological innovation, to the global movement of populations and the restructuring of world politics, to urbanization, social change, and rapid demographic growth, and to inter-religious contact. The region is a weathervane on the front lines of the forces of global change. In nine thematic sections, the chapters in this book offer holistic analyses of the key forces shaping the region. Including scholars based in Africa, Europe, and the United States, the authors represent an exceptional breadth and depth of expertise on the Sahel.