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The impact of formal financing on small informal enterprises in Comoros

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  • François Fall

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville)

  • Akim Almouksit

Abstract

The purpose of this contribution is to highlight the impact of formal credit on both the turnover and the formalization of informal production units (IPUs) in Comoros. Based on informal sector survey data, we analyse the impact using a method combining Propensity Score Matching (PSM) and the Coarsened Exact Matching (CEM) developed by Iacus et al. (2012). The results show that formal credit has a positive and significant impact on both the turnover and the formalisation of IPUs. The combination of the PSM with the CEM has considerably improved the quality of the matching.

Suggested Citation

  • François Fall & Akim Almouksit, 2016. "The impact of formal financing on small informal enterprises in Comoros," Working Papers hal-01566389, HAL.
    • Handle: RePEc:hal:wpaper:hal-01566389
    Note: View the original document on HAL open archive server: https://univ-tlse2.hal.science/hal-01566389
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    References listed on IDEAS

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    1. Akoten, John E & Sawada, Yasuyuki & Otsuka, Keijiro, 2006. "The Determinants of Credit Access and Its Impacts on Micro and Small Enterprises: The Case of Garment Producers in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 927-944, July.
    2. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 2021. "Improving Access to Banking: Evidence from Kenya [A matter of experience? Understanding the decline in group lending]," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
    3. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    4. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    5. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    6. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2012. "Causal Inference without Balance Checking: Coarsened Exact Matching," Political Analysis, Cambridge University Press, vol. 20(1), pages 1-24, January.
    7. World Bank, 2014. "Global Financial Development Report 2014 : Financial Inclusion," World Bank Publications - Books, The World Bank Group, number 16238.
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