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Constrained gazelles : high potentials in West Africa's informal economy

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  • Grimm, Michael
  • Knorringa, Peter
  • Lay, Jann

Abstract

The informal sector is typically characterized as being very heterogeneous and possibly composed of two clearly distinct segments, sometimes called the lower and upper tier. However, empirical evidence shows that even among lower tier entrepreneur's profitability can be quite high. The authors combine these findings and develop an innovative approach to identify what is called constrained gazelles, next to the well-known survivalists in the lower tier and growth-oriented top-performers in the upper tier. The sample of informal entrepreneurs in seven West-African countries allows linking the relative size of these three groups to the structural and macroeconomic environment in these countries.

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Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 77926.

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Date of creation: 01 Mar 2012
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Handle: RePEc:wbk:hdnspu:77926

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Keywords: Access to Finance; Economic Theory&Research; Microfinance; Financial Literacy; Environmental Economics&Policies;

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References

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  1. Maloney, William, 2003. "Informality revisited," Policy Research Working Paper Series, The World Bank 2965, The World Bank.
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Citations

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Cited by:
  1. Margolis, David N., 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," IZA Discussion Papers 8273, Institute for the Study of Labor (IZA).
  2. M. Arouri & A. Ben Youssef & Ceyhun Elgin, 2014. "Informal economy in Africa: Building human capital to set the Gazelles free," Working Papers, Bogazici University, Department of Economics 2014/04, Bogazici University, Department of Economics.
  3. Verrest, Hebe, 2013. "Rethinking Microentrepreneurship and Business Development Programs: Vulnerability and Ambition in Low-income Urban Caribbean Households," World Development, Elsevier, Elsevier, vol. 47(C), pages 58-70.

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