IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03715711.html
   My bibliography  Save this paper

Competing against 'invisibles': the effect of competition from informal firms on formal firms' R&D

Author

Listed:
  • Dorgyles C.M. Kouakou

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, Université Alassane Ouattara [Bouaké, Côte d'Ivoire])

Abstract

Competition from informal firms is an important issue that face most formal firms in developing countries. It usually leads to market share losses in formal firms and weakens their self-financing capacity. Recently, a stream of literature has been developed concerning its impact on the outcomes and strategic choices of formal firms. This paper contributes to this literature by investigating the effect of the Competitive Pressure from the Informal Sector (CPIS) on the research and development (R&D) investment of formal firms using firm-level data from Cote d'Ivoire. It emerges that the CPIS incites formal firms to engage more in R&D when it constitutes a problem, but not a severe one, for them in conducting their activities, which implies a positive effect. However, this effect is lost when the problem is severe. We conclude by discussing policy implications.

Suggested Citation

  • Dorgyles C.M. Kouakou, 2023. "Competing against 'invisibles': the effect of competition from informal firms on formal firms' R&D," Post-Print hal-03715711, HAL.
    • Handle: RePEc:hal:journl:hal-03715711
    DOI: 10.1007/s40821-022-00217-0
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03715711. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.