English, Article, Journal or magazine article edition: Informal Firms in Developing Countries: Entrepreneurial Stepping Stone or Consolation Prize? Bennett, John

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Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Informal Firms in Developing Countries: Entrepreneurial Stepping Stone or Consolation Prize?
Author
  • Bennett, John
Physical Description
  • preprint
Notes
  • We analyse potential dynamic benefits for a firm from having the option of adopting informal status. Informality may be a stepping stone, without which formality might never be achieved. This result obtains for a broad range of realistic parameter values, suggesting a potential dynamic case for government support of informal firms. Informality may alternatively play a converse role as a consolation prize, a firm only entering an industry (formally) because it recognizes that if profitability is disappointing, it can switch to informality. However, this result obtains for a range of parameter values so narrow to be of no practical significance.
  • informality; entrepreneurship
  • RePEc:unu:wpaper:rp2009-19
Language
  • English
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