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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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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2018-159.pdf
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    References listed on IDEAS

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    Cited by:

    1. Berkel, Hanna & Estmann, Christian & Rand, John, 2022. "Local governance quality and law compliance: The case of Mozambican firms," World Development, Elsevier, vol. 157(C).
    2. 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).
    3. Nam Hoang Vu & Tram-Anh Nguyen & Tram Bao Hoang & Nguyen Viet Cuong, 2024. "Formal Firms with Bribery in a Dynamic Business Environment," Journal of Business Ethics, Springer, vol. 191(3), pages 571-589, May.

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