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MSEs Informality and Productivity: Evidence from Egypt

Author

Listed:
  • Hala Abou-Ali
  • Reham Rizk

    (British University)

Abstract

This paper assesses the impact of informality on household enterprise performance in terms of productivity and size of output. Furthermore, it pinpoints informality determinants with respect to different types of obstacles that impede their growth. The analysis uses the ELMPS 2012 data and finds that a firm’s age and an entrepreneur’s education level have a significant impact on the likelihood of belonging to the informal sector. Moreover, mobile enterprises, agricultural sector and household savings increase the probability of belonging to the informal sector. In sum, the results support the argument that informality has a deterrent impact on the level of productivity and the value of output of household enterprise in Egypt.

Suggested Citation

  • Hala Abou-Ali & Reham Rizk, 2015. "MSEs Informality and Productivity: Evidence from Egypt," Working Papers 916, Economic Research Forum, revised May 2015.
    • Handle: RePEc:erg:wpaper:916
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    References listed on IDEAS

    as
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    4. Thi Quynh Trang Do, 2009. "How firm characteristics affect the level of constrain to growth : An empirical analysis of micro and small firms in Vietnam," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00429732, HAL.
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    8. repec:ilo:ilowps:357068 is not listed on IDEAS
    9. Thi Quynh Trang Do, 2009. "How firm characteristics affect the level of constrain to growth : An empirical analysis of micro and small firms in Vietnam," Post-Print halshs-00429732, HAL.
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    Cited by:

    1. Caroline Krafft, 2016. "Understanding the Dynamics of Household Enterprises in Egypt: Birth, Death, Growth and Transformation," Working Papers 983, Economic Research Forum, revised Mar 2016.
    2. Caroline Krafft & Ragui Assaad, 2018. "Do More Productive Firms Pay Workers More? Evidence from Egypt," Working Papers 1222, Economic Research Forum, revised 18 Sep 2018.

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