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The Urban Informal Sector in Francophone Africa: Large Versus Small Enterprises in Benin, Burkina Faso and Senegal

Author

Listed:
  • Ahmadou Aly Mbaye
  • Nancy Benjamin
  • Stephen Golub
  • Jean-Jacques Ekomie

    (Université Cheikh anta Diop de Dakar
    Professor of Economics)

Abstract

The informal sector is often associated with micro- and family-based firms. In West Africa, however, some informal firms are very large. Based on detailed surveys and interviews carried out in Benin, Burkina Faso and Senegal, we compare the characteristics of formal, large informal and small informal firms. This paper discusses the survey methodology, the main industries in which large informal firms operate, and the characteristics and functioning of firms. It shows that large informal firms have some features of both their formal and small informal counterparts, but in terms of management structure and functioning they are more like informal firms than formal firms. Policy should adopt a differentiated approach towards large versus small informal firms, as they have different effects on poverty alleviation and economic development.

Suggested Citation

  • Ahmadou Aly Mbaye & Nancy Benjamin & Stephen Golub & Jean-Jacques Ekomie, 2014. "The Urban Informal Sector in Francophone Africa: Large Versus Small Enterprises in Benin, Burkina Faso and Senegal," Working Papers 201405, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:201405
    as

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    File URL: https://commerce.uct.ac.za/sites/default/files/content_migration/commerce_uct_ac_za/1093/files/DPRU%2520WP201405.pdf
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    References listed on IDEAS

    as
    1. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    2. Nancy Benjamin & Ahmadou Aly Mbaye, 2014. "Informality, Growth, and Development in Africa," WIDER Working Paper Series wp-2014-052, World Institute for Development Economic Research (UNU-WIDER).
    3. Böhme, Marcus & Thiele, Rainer, 2012. "Is the Informal Sector Constrained from the Demand Side? Evidence for Six West African Capitals," World Development, Elsevier, vol. 40(7), pages 1369-1381.
    4. Jean-François Gautier, 2002. "Taxation optimale de la consommation et biens informels," Revue économique, Presses de Sciences-Po, vol. 53(3), pages 599-610.
    5. World Bank, 2013. "Estimating Trade Flows, Describing Trade Relationships, and Identifying Barriers to Cross-Border Trade Between Cameroon and Nigeria," World Bank Publications - Reports 16530, The World Bank Group.
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    11. Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2009. "On Defining and Measuring the Informal Sector: Evidence from Brazil," World Development, Elsevier, vol. 37(5), pages 992-1003, May.
    12. Gasparini Leonardo & Leonardo Tornaroli, 2009. "Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Informal sector; economic development; West Africa; Senegal; Burkina Faso; Benin;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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