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SME’s registration: Evidence from an RCT in Bangladesh

  • De Giorgi, Giacomo
  • Rahman, Aminur

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.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 120 (2013)
Issue (Month): 3 ()
Pages: 573-578

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Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:573-578
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  1. David Kaplan & Eduardo Piedra & Enrique Seira, 2006. "Are Burdensome Registration Procedures an Important Barrier on Firm Creation? Evidence from Mexico," Discussion Papers 06-013, Stanford Institute for Economic Policy Research.
  2. McKenzie, David & Sakho, Yaye Seynabou, 2007. "Does It Pay Firms to Register for Taxes? The Impact of Formality on Firm Profitability," IZA Discussion Papers 3179, Institute for the Study of Labor (IZA).
  3. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2012. "The Demand for, and Consequences of, Formalization among Informal Firms in Sri Lanka," IZA Discussion Papers 6442, Institute for the Study of Labor (IZA).
  4. Kaplan, David S. & Piedra, Eduardo & Seira, Enrique, 2007. "Entry regulation and business start-ups : evidence from Mexico," Policy Research Working Paper Series 4322, The World Bank.
  5. Bruhn, Miriam, 2008. "License to sell : the effect of business registration reform on entrepreneurial activity in Mexico," Policy Research Working Paper Series 4538, The World Bank.
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