The Demand for, and Consequences of, Formalization among Informal Firms in Sri Lanka

• Tác giả: Suresh de Mel
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330.95 Economics
• Thông tin xuất bản: American Economic Association, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 294097
• Chủ đề: 1. entrepreneurship; 2. firm behavior; 3. firm performance; 4. industrialization; 5. manufacturing

Tóm tắt

A field experiment in Sri Lanka provides informal firms incentives to formalize. Information about the registration process and reimbursement of direct costs does not increase registration. Payments equivalent to one-half to one month (alternatively, two months) of the median firm's profits leads to registration of around one-fifth (alternatively, one-half ) of firms. Land ownership issues are the most common reason for not registering. Follow-up surveys 15 to 31 months later show higher mean profits, but largely in a few firms that grew rapidly. We find little evidence for other changes in behavior, but formalized firms express more trust in the state.