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Are Practices Of Competitors In The Informal Sector A Major Threat For Hotels And Restaurants?

Author

Listed:
  • Ioana A. HORODNI

    (Alexandru Ioan Cuza University of Iasi, Iasi, Romania)

  • Colin C. WILLIAMS

    (niversity of Sheffield, Sheffield, United Kingdom)

  • Adrian V. HORODNIC

    (“Gr. T. Popa” University of Medicine and Pharmacy, Iasi, Romania)

Abstract

This paper evaluates the perceived impacts of the informal economy on registered business in the “hotels and restaurants” sector and identifies the characteristics of firms that perceive informal practices as the biggest obstacle faced in their activity. Reporting data from the Business Environment and Enterprise Performance Surveys conducted by the World Bank and the European Bank for Reconstruction and Development in 11 countries in Eastern Europe in 2013, the finding is that registered firms in the “hotels and restaurant” sector perceive informal practices as a bigger obstacle in their activity compared with firms in other sectors. Medium sized companies are less likely to consider the informal sector as the biggest obstacle faced in their activity, whilst a lack of subsidies reduces the likelihood of considering the informal sector as the biggest obstacle for the firm. The implications of the findings are then explored

Suggested Citation

  • Ioana A. HORODNI & Colin C. WILLIAMS & Adrian V. HORODNIC, 2016. "Are Practices Of Competitors In The Informal Sector A Major Threat For Hotels And Restaurants?," THE YEARBOOK OF THE "GH. ZANE" INSTITUTE OF ECONOMIC RESEARCHES, Gheorghe Zane Institute for Economic and Social Research ( from THE ROMANIAN ACADEMY, JASSY BRANCH), vol. 25(1), pages 49-60.
    • Handle: RePEc:zan:ygzier:v:25:y:2016:i:1:p:49-60
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    References listed on IDEAS

    as
    1. ., 2014. "The role of comity and cooperation," Chapters, in: International Merger Policy, chapter 7, pages 157-218, Edward Elgar Publishing.
    2. Ioana Alexandra Horodnic & Colin C. Williams, 2021. "Cash wage payments in transition economies: Consequences of envelope wages," IZA World of Labor, Institute of Labor Economics (IZA), pages 280-280, October.
    3. Heo, Cindy Yoonjoung, 2016. "Sharing economy and prospects in tourism research," Annals of Tourism Research, Elsevier, vol. 58(C), pages 166-170.
    4. Colin C. Williams & Ioana A. Horodnic, 2017. "Evaluating the Illegal Employer Practice of Under-Reporting Employees’ Salaries," British Journal of Industrial Relations, London School of Economics, vol. 55(1), pages 83-111, March.
    5. Colin C. WILLIAMS & Mark A. LANSKY, 2013. "Informal employment in developed and developing economies: Perspectives and policy responses," International Labour Review, International Labour Organization, vol. 152(3-4), pages 355-380, December.
    6. Thomas, Rhodri & Shaw, Gareth & Page, Stephen J., 2011. "Understanding small firms in tourism: A perspective on research trends and challenges," Tourism Management, Elsevier, vol. 32(5), pages 963-976.
    7. Colin C. Williams & Muhammad S. Shahid, 2016. "Informal entrepreneurship and institutional theory: explaining the varying degrees of (in)formalization of entrepreneurs in Pakistan," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 1-25, January.
    Full references (including those not matched with items on IDEAS)

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