Building on imprinting theory, we formalize the construct ‘liability of informality’, arguing that firms that start operating in the informal sector but later move to the formal sector are less likely to participate directly, and more likely to participate indirectly, in global value chains (GVCs) than those that start out as registered businesses. We further argue that the amount of time spent in the informal sector emphasizes these effects. Using World Bank Enterprise Survey data from 112 developing and emerging economies, we show that informality leaves a strong blueprint on firms, which tends to persist over time.

Liability of informality and firm participation in global value chains

Assefa, Dawit Z.
Ultimo
2022-01-01

Abstract

Building on imprinting theory, we formalize the construct ‘liability of informality’, arguing that firms that start operating in the informal sector but later move to the formal sector are less likely to participate directly, and more likely to participate indirectly, in global value chains (GVCs) than those that start out as registered businesses. We further argue that the amount of time spent in the informal sector emphasizes these effects. Using World Bank Enterprise Survey data from 112 developing and emerging economies, we show that informality leaves a strong blueprint on firms, which tends to persist over time.
2022
File in questo prodotto:
File Dimensione Formato  
3325110.pdf

solo utenti autorizzati

Descrizione: Articolo
Tipologia: Versione Editoriale (PDF)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 685.39 kB
Formato Adobe PDF
685.39 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11570/3325110
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 13
  • ???jsp.display-item.citation.isi??? 11
social impact