The Library
The demand for, and consequences of, formalization among informal firms in Sri Lanka
Tools
de Mel, Suresh, McKenzie, David and Woodruff, Christopher (2013) The demand for, and consequences of, formalization among informal firms in Sri Lanka. American Economic Journal: Applied Economics, Volume 5 (Number 2). pp. 122-150. doi:10.1257/app.5.2.122 ISSN 1945-7782.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1257/app.5.2.122
Abstract
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. (JEL C93, D22, L25, L26, O14)
Item Type: | Journal Article | ||||
---|---|---|---|---|---|
Divisions: | Faculty of Social Sciences > Economics | ||||
Journal or Publication Title: | American Economic Journal: Applied Economics | ||||
Publisher: | American Economic Association | ||||
ISSN: | 1945-7782 | ||||
Official Date: | 2013 | ||||
Dates: |
|
||||
Volume: | Volume 5 | ||||
Number: | Number 2 | ||||
Page Range: | pp. 122-150 | ||||
DOI: | 10.1257/app.5.2.122 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |