Economic Growth and Poverty: Does Formalisation of Informal Enterprises Matter?
The informal sector (IS) plays a significant role in developing countries viz. the provision of employment, income and supplying ignored markets. However, working and employment conditions within the sector are still poor. Its expansion and changing structures have thus drawn the attention of scholars and international policy makers to the factors hindering its formalisation. Among the factors addressed are the high costs of formalisation and the lack of incentives for operating in the formal sector. A variety of approaches have been adopted by different stakeholders to overcome these factors. This paper assesses these approaches along with the factors related to informality-formality trade-off and the issue of formalisation as a solution for firms’ growth. By focussing on the problems faced by informal enterprises and the literature which addresses the options for accelerating the formalisation of informal enterprises, the paper will briefly summarise the weaknesses of these approaches.
|Date of creation:||Apr 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (0)40 42825-593
Fax: +49 (0)40 42825-547
Web page: http://www.giga-hamburg.de/workingpapersEmail:
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Loayza, Norman A., 1997.
"The economics of the informal sector : a simple model and some empirical evidence from Latin America,"
Policy Research Working Paper Series
1727, The World Bank.
- Loayza, Norman V., 1996. "The economics of the informal sector: a simple model and some empirical evidence from Latin America," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 129-162, December.
- Reinikka, Ritva & Svensson, Jakob, 2002. "Coping with poor public capital," Journal of Development Economics, Elsevier, vol. 69(1), pages 51-69, October.
- Christian Morrisson, 1995. "What Institutional Framework for the Informal Sector?," OECD Development Centre Policy Briefs 10, OECD Publishing.
- Klein, Michael, 2003. "Ways out of poverty : diffusing best practices and creating capabilities - perspectives on policies for poverty reduction," Policy Research Working Paper Series 2990, The World Bank.
- International Monetary Fund, 2004. "Serbia and Montenegro; Poverty Reduction Strategy Paper," IMF Staff Country Reports 04/120, International Monetary Fund.
- Howell, Jude & Singh, Andrea, 2002. "Good practice study in Shanghai on employment services for the informal economy," ILO Working Papers 355191, International Labour Organization.
- Robert C. Feenstra, 1998.
"Integration of Trade and Disintegration of Production in the Global Economy,"
Journal of Economic Perspectives,
American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics.
- Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
- Abigail Barr, 1998.
"Enterprise performance and the functional diversity of social capital,"
CSAE Working Paper Series
1998-01, Centre for the Study of African Economies, University of Oxford.
- Abigail Barr, 1998. "Enterprise performance and the functional diversity of social capital," Economics Series Working Papers WPS/1998-01, University of Oxford, Department of Economics.
- Ranis, Gustav & Stewart, Frances, 1999. "V-Goods and the Role of the Urban Informal Sector in Development," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 259-88, January.
- A. E. Jackle & C. A. Li, 2003.
"Firm Dynamics and Institutional Participation: A Case Study on Informality of Micro-Enterprises in Peru,"
Economics Discussion Papers
552, University of Essex, Department of Economics.
- Jackle, Annette E & Li, Carmen A, 2006. "Firm Dynamics and Institutional Participation: A Case Study on Informality of Micro Enterprises in Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 557-78, April.
- Levenson, Alec R. & Maloney, William F., 1998. "The informal sector, firm dynamics, and institutional participation," Policy Research Working Paper Series 1988, The World Bank.
- Xaba, Jantjie & Horn, Pat & Motala, Shirin & Singh, Andrea, 2002. "Informal sector in Sub-Saharan Africa," ILO Working Papers 355190, International Labour Organization.
When requesting a correction, please mention this item's handle: RePEc:gig:wpaper:20. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bert Hoffmann)
If references are entirely missing, you can add them using this form.