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Small Retailers in Brazil: Are Formal Firms Really More Productive?

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  • Gaaitzen De Vries

Abstract

This paper examines the productivity of formal and informal retailers in Brazil by simultaneously estimating a stochastic production frontier and an efficiency model for a cross-section of some 11,000 retail firms with, at most, five workers. Results show that the efficiency of firms is positively related with ICT adoption, managerial ability, technical assistance and participation in a guild. Formal retailers are more productive than informal retailers, even after controlling for self-selection and firm, industry, and firm-owner characteristics.

Suggested Citation

  • Gaaitzen De Vries, 2010. "Small Retailers in Brazil: Are Formal Firms Really More Productive?," Journal of Development Studies, Taylor & Francis Journals, vol. 46(8), pages 1345-1366.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:8:p:1345-1366
    DOI: 10.1080/00220380903147668
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    Cited by:

    1. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
    2. Amadou Boly, 2015. "On the benefits of formalization: Panel evidence from Vietnam," WIDER Working Paper Series 038, World Institute for Development Economic Research (UNU-WIDER).
    3. Ugarte, Darwin, 2012. "The impact of formality on firm profitability in Bolivia: an heterogeneous assessment," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 17, pages 53-74, Mayo.
    4. repec:dgr:rugggd:gd-121 is not listed on IDEAS
    5. Smriti Sharma, 2014. "Benefits of a registration policy for microenterprise performance in India," Small Business Economics, Springer, vol. 42(1), pages 153-164, January.
    6. Boly Amadou, 2015. "On the Effects of Formalization on Taxes and Wages: Panel Evidence from Vietnam," WIDER Working Paper Series 042, World Institute for Development Economic Research (UNU-WIDER).

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