IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4235.html
   My bibliography  Save this paper

A framework for thinking about enterprise formalization policies in developing countries

Author

Listed:
  • Kenyon, Thomas

Abstract

What policies encourage firms to become formal? The standard approach emphasizes reducing the costs of compliance with government regulation. This is unlikely to be sufficient. Instead we need to understand compliance as a function not only of firm-level costs and benefits but also in terms of the interaction between the firm and its competitors and between the firm and the state. This paper emphasizes the coordination and credibility issues involved in promoting formalization and discusses possible institutional solutions, among them business associations that make the benefits of membership dependent on compliance, information sharing arrangements among government agencies and improvements in the quality of public management.

Suggested Citation

  • Kenyon, Thomas, 2007. "A framework for thinking about enterprise formalization policies in developing countries," Policy Research Working Paper Series 4235, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4235
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/05/23/000090341_20070523154034/Rendered/PDF/WPS04235.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mathew P. White & J. Richard Eiser, 2006. "Marginal Trust in Risk Managers: Building and Losing Trust Following Decisions Under Uncertainty," Risk Analysis, John Wiley & Sons, vol. 26(5), pages 1187-1203, October.
    2. Emerson Kapaz & Thomas Kenyon, 2005. "The Informality Trap : Tax Evasion, Finance, and Productivity in Brazil," World Bank Publications - Reports 11201, The World Bank Group.
    3. repec:bla:devpol:v:22:y:2004:i:6:p:701-715 is not listed on IDEAS
    4. Jan Hanousek & Filip Palda, 2004. "Quality of Government Services and the Civic Duty to Pay Taxes in the Czech and Slovak Republics, and other Transition Countries," Kyklos, Wiley Blackwell, vol. 57(2), pages 237-252, May.
    5. Doner, Richard F. & Schneider, Ben Ross, 2000. "Business Associations and Economic Development: Why Some Associations Contribute More Than Others," Business and Politics, Cambridge University Press, vol. 2(3), pages 261-288, November.
    6. Palmade, Vincent, 2005. "Industry level analysis : the way to identify the binding constraints to economic growth," Policy Research Working Paper Series 3551, The World Bank.
    7. Doner Richard F. & Schneider Ben Ross, 2000. "Business Associations and Economic Development: Why Some Associations Contribute More Than Others," Business and Politics, De Gruyter, vol. 2(3), pages 1-29, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mangku Purnomo & Erekso Hadiwiyono & Novil Dedy Andriatmoko & Imaniar Ilmi Pariasa & Asihing Kustanti & Heiko Faust, 2022. "Transformation Role of Forest Farmer Group’s (FFGs) in Indonesia from Development Agent to Brokering Project," SAGE Open, , vol. 12(1), pages 21582440221, March.
    2. Kabubo-Mariara, Jane & Machio, Phyllis Mumia & Njoroge, Michael Murigi & Chemengich, Margaret, 2023. "Links between firm registration and performance: Does it pay to register?," World Development, Elsevier, vol. 169(C).
    3. Rafaela Bastidas & Nicolás Acosta, 2019. "Misallocation and manufacturing TFP in Ecuador: formal, semi-formal and informal firms," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-29, December.
    4. repec:idq:ictduk:13663 is not listed on IDEAS
    5. repec:kqi:journl:2017-1-1 is not listed on IDEAS
    6. Ana Maria Oviedo & Mark R. Thomas & Kamer Karakurum-Ozdemir, 2009. "Economic Informality : Causes, Costs, and Policies - A Literature Survey," World Bank Publications - Books, The World Bank Group, number 5917.
    7. World Bank, 2009. "Gender in Bolivian Production : Reducing Differences in Formality and Productivity of Firms," World Bank Publications - Books, The World Bank Group, number 2669.
    8. Belal Fallah, 2014. "The Pros and Cons of Formalizing Informal MSES in the Palestinian Economy," Working Papers 893, Economic Research Forum, revised Dec 2014.
    9. Neil McCulloch & Günther G. Schulze & Janina Voss, 2010. "What Determines Firms’ Decisions to Formalize?," Discussion Paper Series 13, Department of International Economic Policy, University of Freiburg, revised Nov 2010.
    10. World Bank, 2012. "Ecuador : The Faces of Informality (Las Caras de La Informalidad) [Ecuador - Las caras de la informalidad]," World Bank Publications - Reports 13252, The World Bank Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeffrey B. Nugent & Grigor. Sukiassyan, 2009. "Alternative Strategies For Firms In Oppressive And Corrupt States: Informality Or Formality Via Business Associations?," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 423-439, October.
    2. Pyle, William, 2006. "Resolutions, recoveries and relationships: The evolution of payment disputes in Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 317-337, June.
    3. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    4. Shao, Yan & Sun, Lingxia, 2021. "Entrepreneurs’ social capital and venture capital financing," Journal of Business Research, Elsevier, vol. 136(C), pages 499-512.
    5. Owolabi, Oluwarotimi & Pal, Sarmistha, 2011. "The Value of Business Networks in Emerging Economies: An Analysis of Firms' External Financing Opportunities," IZA Discussion Papers 5738, Institute of Labor Economics (IZA).
    6. Abdel-Latif Abla & Schmitz Hubert, 2010. "Growth Alliances: Insights from Egypt," Business and Politics, De Gruyter, vol. 12(4), pages 1-29, December.
    7. Kazun, Anton (Казун, Антон) & Yakovlev, Andrei (Яковлев, Андрей), 2015. "Community of Attorneys and the Quality of Law Enforcement in Russia [Адвокатское Сообщество И Качество Правоприменения В России]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 7-37.
    8. Neba Bhalla & Rakesh Kumar Sharma & Inderjit Kaur, 2023. "Effect of Goods and Service Tax System on Business Performance of Micro, Small and Medium Enterprises," SAGE Open, , vol. 13(2), pages 21582440231, June.
    9. Scandura, Alessandra & Bolzani, Daniela, 2020. "The Role of Collaboration Networks for Innovation in Immigrant-Owned New Technology-Based Firms," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202004, University of Turin.
    10. Theodore Kahn & Zack Zimbalist, 2022. "Public investment versus government consumption: how FDI shocks shape the composition of subnational spending in Mexico," Review of International Political Economy, Taylor & Francis Journals, vol. 29(2), pages 502-537, March.
    11. repec:zbw:bofitp:2007_018 is not listed on IDEAS
    12. Salo Coslovsky, 2013. "Enforcing Food Quality and Safety Standards in Brazil," The ANNALS of the American Academy of Political and Social Science, , vol. 649(1), pages 122-138, September.
    13. Yakovlev, Andrei & Freinkman, Lev & Zolotov, Anton, 2016. "Domestic and external factors in the development of Russia's economic think tanks sector," BOFIT Policy Briefs 3/2016, Bank of Finland Institute for Emerging Economies (BOFIT).
    14. Brimble, Peter & Doner, Richard F., 2007. "University-Industry Linkages and Economic Development: The Case of Thailand," World Development, Elsevier, vol. 35(6), pages 1021-1036, June.
    15. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    16. William Pyle, 2007. "Organized Business, Political Regimes and Property Rights across the Russian Federation," Middlebury College Working Paper Series 0703, Middlebury College, Department of Economics.
    17. Coates, Dennis & Heckelman, Jac C. & Wilson, Bonnie, 2010. "The political economy of investment: Sclerotic effects from interest groups," European Journal of Political Economy, Elsevier, vol. 26(2), pages 208-221, June.
    18. Calì, Massimiliano & Sen, Kunal, 2011. "Do Effective State Business Relations Matter for Economic Growth? Evidence from Indian States," World Development, Elsevier, vol. 39(9), pages 1542-1557, September.
    19. Anton P. Kazun & Andrei A. Yakovlev, 2014. "Who Demands Collective Action In An Imperfect Institutional Environment? A Case-Study Of The Professional Community Of Attorneys In Russia," HSE Working papers WP BRP 54/SOC/2014, National Research University Higher School of Economics.
    20. Vinish, Kathuria & Seethamma Natarajan, Rajesh Raj & Sen, Kunal, 2010. "Rain, Rain, Go Away? The Investment Climate, State Business Relations and Firm Performance in India," MPRA Paper 20316, University Library of Munich, Germany.
    21. Andrei Yakovlev & Lev Freinkman & Anton Zolotov, 2017. "The Collective Action of Think Tanks as a Driver for Reforms: The Case of the Russian Analytical Community," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 495-514, December.

    More about this item

    Keywords

    Microfinance; Small Scale Enterprise; Public Sector Economics&Finance; Economic Theory&Research; Public Sector Regulation;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:wbk:wbrwps:4235. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    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.