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SME’s registration: Evidence from an RCT in Bangladesh

Author

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  • De Giorgi, Giacomo
  • Rahman, Aminur

Abstract

Firms informality is pervasive in Bangladesh. We implemented an information campaign on registration and find that the treatment made firms more aware, but had no impact on registration. Low benefits and high indirect costs appear to be barriers to formality.

Suggested Citation

  • De Giorgi, Giacomo & Rahman, Aminur, 2013. "SME’s registration: Evidence from an RCT in Bangladesh," Economics Letters, Elsevier, vol. 120(3), pages 573-578.
  • Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:573-578
    DOI: 10.1016/j.econlet.2013.06.026
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    References listed on IDEAS

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    1. Miriam Bruhn, 2011. "License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 382-386, February.
    2. Kaplan, David S. & Piedra, Eduardo & Seira, Enrique, 2011. "Entry regulation and business start-ups: Evidence from Mexico," Journal of Public Economics, Elsevier, vol. 95(11), pages 1501-1515.
    3. Suresh de Mel & David McKenzie & Christopher Woodruff, 2013. "The Demand for, and Consequences of, Formalization among Informal Firms in Sri Lanka," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 122-150, April.
    4. McKenzie, David & Seynabou Sakho, Yaye, 2010. "Does it pay firms to register for taxes? The impact of formality on firm profitability," Journal of Development Economics, Elsevier, vol. 91(1), pages 15-24, January.
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    Citations

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    Cited by:

    1. Cabrera, José María & Cid, Alejandro & Bernatzky, Marianne Bernatzky, 2016. "The effect of one-on-one assistance on the compliance with labor regulation. A field experiment in extremely vulnerable settings," MPRA Paper 84639, University Library of Munich, Germany.
    2. Brian McCaig, Jordan Nanowski, 2018. "Business Formalization in Vietnam," LCERPA Working Papers 0113, Laurier Centre for Economic Research and Policy Analysis, revised 01 Feb 2018.
    3. repec:eee:labeco:v:45:y:2017:i:c:p:143-157 is not listed on IDEAS
    4. Tulio Cravo & Caio Piza, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low -and Middle- Income Countries: A Meta-Analysis," IDB Publications (Working Papers) 94938, Inter-American Development Bank.
    5. Galiani, Sebastian & Meléndez, Marcela & Ahumada, Camila Navajas, 2017. "On the effect of the costs of operating formally: New experimental evidence," Labour Economics, Elsevier, vol. 45(C), pages 143-157.
    6. Rothenberg, Alexander D. & Gaduh, Arya & Burger, Nicholas E. & Chazali, Charina & Tjandraningsih, Indrasari & Radikun, Rini & Sutera, Cole & Weilant, Sarah, 2016. "Rethinking Indonesia’s Informal Sector," World Development, Elsevier, vol. 80(C), pages 96-113.
    7. Beegle,Kathleen G. & Benjamin,Nancy Claire & Recanatini,Francesca & Santini,Massimiliano, 2014. "Informal economy and the World Bank," Policy Research Working Paper Series 6888, The World Bank.
    8. Katharina Gangl & Erich Kirchler & Christian Lorenz & Benno Torgler, 2015. "Wealthy Tax Non-Filers in a Developing Nation: The Roles of Taxpayer Knowledge, Perceived Corruption and Service Orientation in Pakistan," CREMA Working Paper Series 2015-08, Center for Research in Economics, Management and the Arts (CREMA).
    9. Natalia Salazar Ferro & Carlos Antonio Mesa & Natalia Navarrete, 2017. "La estructura de las tarifas de registro en las Cámaras de Comercio y beneficios de sus servicios: impacto sobre la competitividad y la formalidad empresarial," INFORMES DE INVESTIGACIÓN 015726, FEDESARROLLO.
    10. Campos, Francisco & Goldstein, Markus & McKenzie, David, 2015. "Short-term impacts of formalization assistance and a bank information session on business registration and access to finance in Malawi," Policy Research Working Paper Series 7183, The World Bank.

    More about this item

    Keywords

    Firms; Informality; Development;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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