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The costs and benefits of formalization for firms: A mixed-methods study on Mozambique

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  • Hanna Berkel

Abstract

This paper is the first to use a panel dataset from the African continent to investigate the relationship between formalization and firm outcomes. Instead of applying a binary formality indicator, it constructs a conceptual framework that regards informality as a continuum consisting of four degrees. The quantitative data includes 516 manufacturing enterprises which are analysed through a matched double difference approach.

Suggested Citation

  • Hanna Berkel, 2018. "The costs and benefits of formalization for firms: A mixed-methods study on Mozambique," WIDER Working Paper Series wp-2018-159, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-159
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    Cited by:

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    2. Berkel, Hanna & Estmann, Christian & Rand, John, 2022. "Local governance quality and law compliance: The case of Mozambican firms," World Development, Elsevier, vol. 157(C).
    3. Dumenu, William Kwadwo & Appiah, Louis Gyekye & Paul, Carola & Darr, Dietrich, 2023. "Should forest enterprises formalize? Insight from a multi-dimensional characterization of informal baobab enterprises," Forest Policy and Economics, Elsevier, vol. 150(C).

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